How to Formally Cease Nigerian Tax Residency with FIRS 2026: The Practical Steps

One of the most overlooked steps when relocating abroad is formally notifying FIRS that you are no longer a Nigerian tax resident. Without this step, FIRS may continue to expect annual tax returns and payment of tax on your worldwide income - even if you are living in the UAE, Mauritius, or anywhere else.

Why formal notification matters

Nigerian tax residency is not automatically terminated when you leave Nigeria. Under the Personal Income Tax Act (PITA), you remain a Nigerian tax resident until you formally cease to be one.

The practical consequence: If you do not notify FIRS, you may:

• Continue to receive tax assessment notices from FIRS
• Be treated as a Nigerian tax resident for CRS purposes (your foreign accounts reported to FIRS)
• Face penalties for non-filing of annual returns
• Have difficulty obtaining a Tax Clearance Certificate when you need one

The formal process

Step 1 - Establish genuine residency abroad
Before notifying FIRS, ensure you have genuinely established tax residency in another country. This means:

• Valid residence permit in the new country
• Spending 183+ days per year in the new country
• Genuine economic ties (bank account, accommodation, business)

Step 2 - Notify your FIRS tax office
Write a formal letter to the FIRS tax office where you are registered (typically the office in your state of residence in Nigeria). The letter should state:

• Your full name and Tax Identification Number (TIN)
• Your Nigerian address
• Your new country of residence and address
• The date from which you ceased to be a Nigerian tax resident
• Your new country's tax authority and your tax reference number there (if available)

Step 3 - File a final Nigerian tax return
File a final personal income tax return for the year in which you ceased Nigerian tax residency. This covers the period from 1 January to the date you ceased residency.

Step 4 - Obtain a Tax Clearance Certificate
After filing your final return and settling any outstanding tax, obtain a Tax Clearance Certificate from FIRS. This confirms you have no outstanding Nigerian tax obligations.

Step 5 - Update your Nigerian bank accounts
Notify your Nigerian banks of your change of tax residency. Update the tax residency declaration on your accounts to reflect your new country of residence. This affects how your accounts are reported under CRS.

Primary source: https://www.firs.gov.ng/

What remains after you leave

Even after ceasing Nigerian tax residency, you may still have Nigerian tax obligations:

Nigerian-source income subject to withholding tax:

• Rental income from Nigerian property: 10% withholding tax
• Dividends from Nigerian companies: 10% withholding tax
• Interest from Nigerian bank accounts: 10% withholding tax
• Royalties from Nigerian sources: 10% withholding tax

These taxes are deducted at source by the payer. You may need to file a non-resident tax return to claim any applicable treaty benefits.

Nigerian property: Owning property in Nigeria does not make you a Nigerian tax resident. But rental income from that property is Nigerian-source income subject to Nigerian tax.

Nigerian business interests: If you own shares in a Nigerian company, dividends are subject to Nigerian withholding tax regardless of where you live.

Keep your TIN

Your Nigerian Tax Identification Number (TIN) remains valid after you cease Nigerian tax residency. You will need it for:

• Receiving Nigerian-source income (the payer needs your TIN for withholding)
• Filing non-resident tax returns
• Any future dealings with Nigerian tax authorities
• Obtaining a Tax Clearance Certificate

The CRS update

After formally ceasing Nigerian tax residency, update your tax residency declaration with every bank where you hold accounts - both Nigerian and foreign. This ensures:

• Your Nigerian accounts are reported to FIRS as non-resident accounts (different treatment)
• Your foreign accounts are reported to your new country of tax residence (not Nigeria)

Evidence note

Nigerian tax residency rules sourced from the Personal Income Tax Act (PITA) and FIRS at https://www.firs.gov.ng/, retrieved October 2026. The formal notification process described is based on FIRS practice and the PITA framework. Consult a qualified Nigerian tax adviser for your specific situation.