by Margaret Ebeshi
The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr. Taiwo Oyedele, has assured Nigerians in the Diaspora that the Federal Government’s ongoing Fiscal Policy and Tax Reforms are designed to be protective, investor-friendly, and growth-oriented.
Speaking during a joint virtual meeting with the Chairman of the Nigerians in Diaspora Commission (NiDCOM), Dr. Abike Dabiri-Erewa, Mr. Oyedele explained that the reforms aim to promote trade surplus, balance of payments stability, unified foreign exchange rates, and harmonisation of collective taxes and levies.
The interactive session, organised for Nigerians living abroad, sought to dispel misinformation circulating in the media about the impact of the fiscal and tax reforms on the global Nigerian Diaspora community.
The NIDCOM Chairman, Dr. Dabiri-Erewa, emphasised that the Diaspora remains a strategic and major contributor to national development, and therefore deserves to be fully informed about the implications of the new fiscal policy framework scheduled to commence in January 2026.
Mr. Oyedele further explained that the reforms are people-centric, growth-focused, and efficiency-driven, noting that key measures include exemptions and reductions in Withholding Tax (WHT) rates, higher exemption thresholds for small businesses, elimination of taxes on investment and capital, and rationalisation of incentives.
He added that the reforms will also ensure a reduction in the VAT burden and address other structural and fiscal constraints.
During the meeting, several concerns were raised by participants, including whether remittances sent to Nigeria would be taxed, how double taxation treaties with other countries would apply, and the implications for non-resident taxation, income taxes on Diasporas, small business operations, real estate investments, and retired Nigerians with properties at home.
Responding, Mr. Oyedele clarified that no such taxes will be applied to Diaspora remittances or investments, assuring participants that Nigeria remains an attractive destination for investment and business opportunities.
The two-hour session provided participants with detailed clarifications on fiscal policy directions and reaffirmed the government’s commitment to creating a transparent and fair tax system that encourages both local and Diaspora engagement in national development.