Nigeria’s new tax framework has retained exemptions on foreign dividends, interest, rent, and royalties, maintaining a long-standing policy that allows such income to remain tax-free when earned outside the country and remitted through approved financial channels.
The provision, contained in Section 162 of the Nigeria Tax Act 2025, is part of broader fiscal reforms aimed at harmonising the country’s tax system while reducing ambiguity around cross-border income taxation at a time when Nigeria continues to rely heavily on external inflows for foreign exchange liquidity.
The clarification effectively confirms that offshore passive income, including earnings from foreign investments and overseas assets, will not be subject to domestic tax once repatriated under regulated banking channels, reinforcing continuity in Nigeria’s approach to double taxation relief.
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Tax policy expert Kelechi Ibe of TaxSteem said the provision provides continuity but with clearer boundaries
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