US plans impose taxes: Nigerians sending money back home from the United States may soon face additional financial challenges as US lawmakers propose a 5% excise tax on all international remittances.
The draft bill, introduced by House Republicans, seeks to impose this tax on money transfers made by US residents to recipients overseas. If passed, the proposal would have a significant impact on Nigeria, one of the largest recipients of diaspora remittances in Africa. According to the Central Bank of Nigeria (CBN), Nigeria received \$4.22 billion in remittances through International Money Transfer Operators (IMTOs) between January and October 2024. While the exact portion from the US is unclear, it remains a major source of these funds.
The bill reads: “There is hereby imposed on any remittance transfer a tax equal to 5 percent of the amount of such transfer.” The tax would be paid by the sender and collected on a quarterly basis by the US Treasury Department.
Still on US plans impose taxes
Importantly, verified US citizens would be exempt from the tax and allowed to claim it as a credit, as would verified senders using authorized providers.
This proposal is part of a wider trend under the Trump administration to tighten immigration and financial regulations. Earlier this year, US Immigration and Customs Enforcement (ICE) listed nearly two million undocumented immigrants for deportation, and Trump reiterated his stance on ending birthright citizenship.
On the economic front, the US has also taken a tough stance, such as the imposition of a 14% tariff on Nigerian exports in March. Meanwhile, diplomatic tensions between the US and China appear to be easing following a recent agreement that significantly reduced tariffs on both sides.
A regulator is investigating a charity due to concerns over its property and governance practices.
Would you like to Earn Money Online with just your mobile device?
If yes then click on the link below:
https://earnbean.ng/
