AI agents for business finance: what they can and can't do
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The short answer
Nigeria signed the Multilateral Competent Authority Agreement on the Common Reporting Standard on 17 August 2017, and its CRS Regulations took effect on 1 July 2019, with 2019 as the first reporting year. Under that system Nigerian financial institutions report accounts held by tax residents of other participating countries, and the information can be exchanged with those countries' tax authorities. Whether a given year's data on your account has reached HMRC is not something either side publishes.
If you live in the UK and keep accounts in Nigeria, you may have been asked by your Nigerian bank where you are tax resident. That question comes from the Common Reporting Standard (CRS), the international system for exchanging financial account information. This guide explains what Nigeria signed, what is reported and what it means for your UK return. It is information, not tax advice.
What Nigeria signed and when
PwC's summary of Nigerian tax (reviewed 29 May 2026) records that:
- Nigeria signed the CRS Multilateral Competent Authority Agreement (MCAA) on 17 August 2017, as the 94th jurisdiction to join.
- The then FIRS issued the Income Tax (Common Reporting Standard) Regulations in 2019, effective 1 July 2019.
- The first reporting year was calendar year 2019.
- Reporting Nigerian financial institutions file an annual electronic return by 31 May of the following year.
FIRS is now the Nigeria Revenue Service (NRS).
What gets reported
PwC says the MCAA lets signatories exchange account information automatically, including the account holder's name, address, tax identification number, the account number, the name of the reporting institution and the year-end balance. Under the CRS Regulations, the Nigerian tax authority can receive information on accounts that Nigerian tax residents hold in participating countries and must provide similar information in return.
The rules bite on banks, not customers: PwC lists penalties for institutions of ₦10 million plus ₦1 million a month for non-compliance or missing returns, and ₦5 million for false information. This is the background to the tax residence questions Nigerian banks now put to account holders.
Does the data actually reach HMRC?
The sources we read confirm Nigeria's commitment and rules, but not which specific exchanges with the UK are active or for which years. Exchanges depend on both countries activating the relationship and on Nigerian institutions reporting accurately. Neither HMRC nor the NRS tells individuals whether their account was reported, and the timing of any exchange is not published either, so information about one year may surface well after that year's filing deadline. The safe assumption is that HMRC can learn about a Nigerian account, and the right response is to report the income correctly, not to guess whether data has been exchanged.
What it means for your UK tax
The CRS does not create any new tax. It shares information. What matters is the existing UK rule: GOV.UK says UK residents normally pay UK tax on foreign income, including interest, dividends and overseas rent. Holding money in a Nigerian account is not taxable in itself; the income it produces is.
| Your situation | What to do |
|---|---|
| Account with no interest, used for family support | Nothing to report as income; keep records of where the money came from |
| Interest or fixed deposit income | Report on SA106 if a return is needed; see naira interest and HMRC |
| Rent paid into the account | Report on SA106 property pages |
| Income from past years never declared | Consider the Worldwide Disclosure Facility |
Worked example
Example. Ngozi has lived in Glasgow since 2020 and kept her Nigerian savings account. In 2026 her bank asks her to complete a tax residence self-certification. She lists the UK as her country of tax residence. The account earned interest each year that she never reported.
- Her bank may now report the account as held by a UK tax resident.
- If her interest each year was within her Personal Savings Allowance and she had no other reason to file, there may be little or no UK tax, but she should check each year.
- If tax is due for past years, coming forward through the disclosure facility is better than waiting for HMRC to write.
Common misunderstandings
- 'Only big balances are reported.' PwC's summary of the regulations does not describe a balance below which personal accounts are left out.
- 'Closing the account stops it.' Past years can still have been reported, and the income from those years is still taxable in the UK.
- 'CRS means HMRC has already assessed me.' Exchanged data is information. Tax is still worked out from your return or an HMRC enquiry.
- 'A domiciliary account is not covered.' The summary refers to financial accounts generally, not only naira accounts.
What to check first
- List every Nigerian account and what it earned each year.
- Answer your bank's self-certification truthfully; a false declaration creates its own problem.
- Work out whether UK tax was due on the income.
- Fix past years before HMRC contacts you.
Our broader guides, does Nigeria share your bank details? and reporting Nigerian accounts abroad, cover other countries.
Where Pryme fits
A Pryme account opened from the UK keeps naira and pounds in one place, with statements that make each year's interest and inflows easy to total for your return. See multicurrency accounts.
Questions people ask
Does Nigeria share bank account information with HMRC?
Nigeria joined the CRS agreement in 2017 and its CRS rules took effect in 2019, so Nigerian banks report accounts of foreign tax residents for exchange. Whether a particular year's data reached HMRC is not published.
What information does CRS share?
Name, address, tax number, account number, the reporting bank's name and the year-end balance, according to PwC's summary.
Why is my Nigerian bank asking where I pay tax?
The CRS Regulations require Nigerian financial institutions to report accounts for exchange, and PwC lists penalties of ₦10 million upwards for institutions that fail to comply.
Is having money in a Nigerian account taxable in the UK?
No, the balance is not taxed. Income it produces, such as interest, is taxable for UK residents.
Sources
- PwC Worldwide Tax Summaries: Nigeria, corporate other issues (CRS) (reviewed 29 May 2026) · accessed Oct 2026
- GOV.UK: Tax on foreign income (updated 1 Oct 2026) · accessed Oct 2026
- GOV.UK: Tax on savings interest, how much is tax-free (updated 30 Sep 2026) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.