Spent 183 Days in Nigeria? What the New Tax Rules Mean for Your Foreign Income

Under Nigeria’s new tax framework, an individual can be treated as a resident of Nigeria if they meet any of several conditions. One of the clearest is spending an aggregate of at least 183 days in Nigeria within a 12-month period, including annual leave or temporary periods of absence.

But 183 days is not the only test. The Nigeria Tax Act 2025 also considers factors such as whether you are domiciled in Nigeria, have a permanent home available for your domestic use, have your habitual abode here, or have substantial economic and immediate family ties to Nigeria.

That distinction matters, especially for Nigerians who work remotely, run businesses for foreign clients, or earn salaries and investment income from outside the country.

What happens when you become a Nigerian tax resident?

Section 12 of the Nigeria Tax Act 2025 provides that the income, gains or profits of a Nigerian resident individual are chargeable to tax in Nigeria wherever they arise.

It also specifically provides that this applies whether or not the income has been brought into or received in Nigeria.

In practical terms, being paid by a foreign company or client does not automatically take that income outside Nigeria’s tax net if you are a Nigerian tax resident.

For example, imagine you live in Nigeria and work remotely for a company in the UK. Your salary is paid into a UK account and you leave the money there.

The fact that the employer and bank account are outside Nigeria does not, by itself, remove the income from the Nigerian tax rules that apply to a resident individual.

The same principle can affect a freelancer in Nigeria who earns from clients in the US, a consultant working with companies abroad, or someone receiving other forms of foreign-source income.

The 183-day rule needs some context

It is easy to read the 183-day rule and assume that spending 182 days in Nigeria automatically makes you a non-resident.

That is not how the new definition works.

The Act lists several circumstances under which an individual can qualify as a resident. Spending at least 183 days in Nigeria within a 12-month period is one of them. Other connections to Nigeria can also matter.

So someone who spends less than 183 days in Nigeria should not automatically assume they have no Nigerian tax residency obligations.

This is particularly relevant to people who split their time between Nigeria and another country.

What about your foreign salary?

Employment income has its own rules under the Act.

Section 13 provides that employment income is derived from Nigeria where the employee is resident in Nigeria. It also contains rules covering situations where employment duties are performed wholly or partly in Nigeria and the employer or the income has particular connections to Nigeria.

This means a remote worker should not determine their Nigerian tax position simply by looking at where their employer is located.

Where you live, where you perform your work and your tax residence can all matter.

The same issue can arise for freelancers and independent professionals.

The Nigeria Tax Act covers income from a trade, business, profession or vocation, and Section 12 applies to the income, gains or profits of a resident individual wherever they arise.

So if you live and work in Nigeria while earning from foreign clients, the fact that your clients are abroad does not automatically make the income foreign and therefore outside Nigerian taxation.

Your records should make it possible to establish where your income came from, what you earned, what expenses you incurred in producing that income and what tax obligations apply.

The 2026 Personal Income Tax Guidelines also require taxable individuals to disclose income from every source in their annual return. For income from a trade, business, profession or vocation, the guidelines require an audited financial statement or a statement of accounts attested to by the taxpayer.

Does keeping the money abroad change anything?

Not necessarily.

This is one of the important parts of the new rule.

Section 12 expressly says the income of a Nigerian resident individual can be chargeable to tax whether or not the income has been brought into or received in Nigeria.

So moving your foreign earnings into a domiciliary account, leaving them with an overseas bank, or receiving them through an international payment platform does not, on its own, determine whether the income is taxable in Nigeria.

The underlying income and your tax residence still have to be considered.

What if you already paid tax abroad?

That does not necessarily mean you will simply pay the full amount again in Nigeria.

Nigeria provides for foreign tax relief in certain circumstances. Where a Nigerian resident earns foreign income that is taxed both in the foreign country and in Nigeria, the foreign tax paid may be credited against the Nigerian tax due on that same income, subject to the applicable limits and conditions. Double taxation agreements can also affect how the income is treated.

The important point is to keep evidence of the foreign income and any tax paid abroad rather than assuming the two tax systems will automatically reconcile themselves.

What should foreign-income earners keep?

If you earn from outside Nigeria, your records should tell a clear story.

Keep records of:

• Contracts and agreements with foreign clients or employers
• Invoices and payment records
• Bank and payment-platform statements
• Foreign currency income received
• Business expenses and supporting documents
• Tax deducted or paid in another country
• Relevant tax certificates or documents issued by foreign authorities

This becomes especially useful when preparing your annual return or establishing how your taxable income was calculated.

The new rules make tax residence an important question for anyone whose income crosses borders. For people who spend significant time in Nigeria while earning from abroad, counting the days they spend in the country is only one part of the picture.

Understanding your residence status and keeping proper records can help you determine what income needs to be reported and what reliefs may be available.

LessaTax helps you keep your income, expenses and supporting tax records organised throughout the year, so you have the information you need when it is time to deal with your tax obligations.