The recent rollout of Nigeria’s Tax Identification Number (TIN) requirement especially as it affects the Diaspora marks a bold shift in the country’s fiscal architecture.
On the surface, this reform aligns with global trends toward financial transparency and tax harmonisation.
If implemented thoughtfully, it has the potential to transform Nigeria’s economic landscape, expand the tax net, and enhance government capacity to invest in infrastructure, healthcare, and education.
But beyond its fiscal ambitions lies a delicate balancing act. Some Diaspora are already concerned, maybe even upset.
Their worries are around how to strengthen Nigeria’s economic sovereignty without alienating the Diaspora.
It is a legitimate concern given that the Diaspora is one of the country’s most strategic national assets.
The TaxID regime holds some promise. It will unlock Nigeria’s long-term gains if other indices are proactively managed.
For decades, Nigeria’s tax-to-GDP ratio has stagnated around 6%–7%, far below the OECD average of 34% and even behind peer economies like South Africa (27%) and Kenya (17%).
The TIN requirement is part of an ambitious effort to broaden the tax base, improve compliance, and boost domestic revenue mobilisation.
The alternative could be increasing the tax burden of the existing 7%. As Nigerians will typical ask: who does that? Well the current government says: not me!
If managed effectively, the reform offers several long-term benefits:
- Strengthened fiscal independence: Greater revenue reduces overreliance on oil earnings and external borrowing.
- Improved credit ratings: Enhanced tax transparency fosters investor confidence and opens the door to better sovereign lending terms.
- Global alignment: Harmonising tax regimes improves Nigeria’s integration with international financial systems, reducing risks associated with money laundering and illicit flows.
- Better governance potential: With improved tax collection comes the opportunity to increase public spending on social welfare, education, and innovation.
In short, the TIN reform can lay the groundwork for inclusive and sustainable growth.
The Pitfalls: Avoiding a Diaspora Disconnect
Yet, no reform of this scale comes without risks. If poorly implemented, the TIN requirement could trigger unintended consequences:
- Remittance Slowdown: With Nigeria receiving over $20 billion annually in diaspora remittances, more than its oil revenues, any friction in the remittance process could harm household incomes, small businesses, and FX stability.
- Diaspora Disenchantment:Many in the diaspora already feel disconnected from Nigeria’s governance. Additional administrative burdens, without adequate support, risk deepening this divide.
- Regulatory Mistrust:A lack of clear communication around how diaspora tax data will be used could breed scepticism and resistance.
Left unaddressed, these risks could undermine the very objectives the reform seeks to achieve.
This is where the naysayers have some points. An all-of-diaspora approach is an imperative of this time.
The Diaspora Playbook: Partnerships for Seamless Implementation
To turn the TIN policy into a win-win for Nigeria and its Diaspora, we need a Diaspora Playbook anchored on multi-stakeholder collaboration:
- NIDO-NiDCOM Partnership
The Nigerians in Diaspora Organisation (NIDO), working closely with the Nigerians in Diaspora Commission (NiDCOM), can serve as the primary interface between the Diaspora and Nigerian authorities.
- Awareness Campaigns: Educate diaspora communities through town halls, webinars, and multilingual toolkits.
- Facilitation Hubs: Set up TIN facilitation centres in Diaspora hotspots. London, Brussels, New York, Toronto, Johannesburg are a few capitals that come to mind that should offer one-stop services.
- FIRS-CBN-Banks Synergy
The Federal Inland Revenue Service (FIRS) must simplify online TIN issuance with free, fast, and secure digital platforms.
- Real-Time Integration:Ensure banks and remittance companies can validate TINs instantly to avoid transaction bottlenecks.
- Cost Neutrality: Maintain zero remittance charges to incentivise compliance.
- Diaspora Ambassadors
Engage trusted Diaspora leaders to humanise the reform and rebuild confidence. Peer-to-peer advocacy is often more effective than top-down mandates.
Policy Recommendations
For this reform to succeed without tears, the following policy steps are critical:
- Seamless Access: Ensure free and rapid TIN issuance through secure online platforms, avoiding delays or bureaucracy.
- Data Protection Guarantees: Provide clear assurances on how diaspora tax data will be used, aligned with global privacy standards.
- Stakeholder Co-Creation: Bring diaspora organisations, remittance providers, and fintech innovators into the design and implementation phases.
- Feedback Mechanisms: Create dedicated helplines and feedback portals for diaspora Nigerians to report challenges in real time.
- Monitoring & Evaluation: Publish quarterly reports on the reform’s progress, challenges, and impact to sustain public trust.
A Call to Partnership
Nigeria’s Diaspora is more than a source of remittances. It is a strategic lever for national transformation.
By contributing skills, networks, and capital, the diaspora has long been a silent partner in nation-building.
The TIN reform should recognise and strengthen this partnership, not strain it.
The government, for its part, must keep its side of the bargain: ensuring a frictionless process, protecting diaspora interests, and demonstrating that tax transparency translates into better services and infrastructure.
In the final analysis, the new TaxID as far as the Diaspora is concerned, could mean a leap from burden to bridge.
The TIN policy doesn’t have to be a burden. It can be made a bridge. It can link Nigeria’s aspirations for fiscal independence with its Diaspora’s potential for transformative impact.
With trust, collaboration, and bold implementation, Nigeria can modernise its tax regime while deepening Diaspora engagement.
Done right, this isn’t just about tax IDs. It can be about rewriting the social contract between Nigeria and its global citizens and proving that together, we can build a stronger, more prosperous Nigeria.
About the Author
The author, Collins Nweke is an International Trade Consultant & Economic Diplomacy researcher. He was a former Green Councillor at Ostend City Council, Belgium, where he served three consecutive terms until December 2024. He is a Fellow of both the Chartered Institute of Public Management of Nigeria and the Institute of Management Consultants. He is also a Distinguished Fellow of the International Association of Research Scholars and Administrators, serving on its Governing Council. A columnist for The Brussels Times, Proshare, and Global Affairs Analyst with a host of media houses, Collins writes from Brussels, Belgium. X: @collinsnweke E: admin@collinsnweke.eu W: www.collinsnweke.eu
