FEC Proposes Amendments to NIMC Act to Issue NIN to Foreign Residents

The Federal Executive Council (FEC) has suggested significant changes to the National Identity Management Commission (NIMC) Act No. 23 of 2007. This will allow National Identification Numbers (NIN) to be issued to foreign residents in Nigeria.

New Taxation Rules for Foreigners

The FEC has also introduced the Economy Stabilisation Bill. This bill focuses on taxing foreigners who live and work in Nigeria. It aims to widen the list of people who must register for taxation, including foreign nationals with an income in Nigeria. The bill will require using an NIN for tax transactions.

According to the proposed amendment, “Any person, whether or not he is a citizen of Nigeria, who is deemed to be resident or subject to tax in Nigeria” will be eligible for taxation.

Tax Registration for Foreigners

If passed, the law will require expatriates and foreign workers to obtain an NIN. This will give them a tax identity under Nigeria’s tax system. Mr. Bayo Onanuga, the Special Adviser to the President, highlighted this during a press briefing in Abuja.

“Once you are working and earning income here, you will be registered and assigned an NIN, allowing you to be taxed,” Onanuga explained. The current NIMC laws do not allow foreigners to register for NIN, making this a key policy shift.

Other Legislative Amendments

Another bill proposes changes to the Nigerian Maritime Administration and Safety Agency (NIMASA) Act No. 17 of 2007. This change would allow payments to be made in Naira for fees and charges, simplifying the process of doing business in Nigeria.

The new subsection says, “All fees, charges, levies, fines, and other monies payable to the Agency may be paid in Naira.” This change aims to strengthen the Naira by reducing dollar payments.

Conclusion

These new amendments will impact foreign residents in Nigeria. They will broaden the tax base and promote identity management. The government hopes this will improve the economy and strengthen the national currency.

For more details on Nigeria’s tax laws, visit the Federal Inland Revenue Service.