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The short answer
Under the Nigeria Tax Act, an individual resident in Nigeria is taxed on worldwide income, so a returnee's UK rent, interest and freelance fees count alongside Nigerian income. Two things reduce double tax: Nigeria allows credit for foreign tax already paid on the same income, and the UK-Nigeria treaty gives some income to one country only, notably pensions, which are taxable only in the country they come from.
Returnees often keep a foot in the UK: a let flat, a workplace pension, an ISA, a few remote clients. Once you are resident in Nigeria, the Nigerian tax computation starts from all of it. That is not the same as paying full tax twice, but it does mean you need a clear map of what each country taxes. If you are not sure you are resident yet, read when Nigerian tax on you starts first.
The basic rule
PwC's summary of personal income tax under the Nigeria Tax Act (reviewed 29 May 2026) says individuals resident in Nigeria are taxed on their worldwide income, at bands from 0% on the first ₦800,000 to 25% above ₦50,000,000. PwC's residence page adds that a resident's income is treated as Nigerian wherever it arises. NiDCOM's diaspora guide (January 2026) sets out the other half: non-residents are taxed only on Nigerian-source income. For the broader list of changes, see what the Act changed for the diaspora.
How each type of UK income is treated
| UK income kept after return | Nigeria (if resident) | UK | Treaty article |
|---|---|---|---|
| Rent from a UK property | Part of worldwide income | May tax it, as the property is in the UK | Art 6: immovable property income may be taxed where the property is |
| UK workplace or personal pension | Not taxed, per the treaty | Taxes it | Art 18: taxable only in the state it comes from |
| Interest from UK accounts | Part of worldwide income | May tax at source within the treaty cap | Art 11: source tax capped at 12.5% |
| Dividends from UK shares | Part of worldwide income | Source tax within the treaty cap | Art 10: 12.5% or 15% cap |
| Fees from UK clients for work done in Nigeria | Part of worldwide income | Generally not, unless you have a fixed base there | Art 14: residence state, unless a fixed base |
The treaty text is from the convention signed in London on 9 June 1987, as published on GOV.UK. Read each article for its exceptions; for example, the pension rule has carve-outs for some older arrangements. NiDCOM's guide also says foreign pensions are not taxed in Nigeria unless they are for work done in Nigeria, which points the same way.
Credit for UK tax already paid
Where both countries can tax the same income, Nigeria gives credit. PwC describes a unilateral relief: if a resident's foreign income has been taxed abroad and is also taxable in Nigeria, the foreign tax may be credited against the Nigerian tax. The treaty's Article 22 provides credit on both sides as well.
Worked example (illustrative)
Example, assuming the credit is allowed in full: Amaka returns to Lagos and keeps a let flat in Leeds. The UK taxes the rent profit; converted, the UK tax comes to ₦2,000,000. In her Nigerian return, the same rent adds ₦3,100,000 to her Nigerian tax. With credit for the UK tax, she pays ₦1,100,000 more in Nigeria (₦3,100,000 − ₦2,000,000). If instead the UK tax were higher than the Nigerian tax on that rent, the credit would normally cover only the Nigerian tax on that income, not create a refund. Confirm how NRS applies the credit to your figures.
A condition worth reading: income brought into Nigeria
PwC's income-determination page notes an exemption for certain dividends, interest, rent and royalties brought into Nigeria in convertible currency through government-approved channels and paid into a local account at an approved bank. The conditions are specific and we could not confirm from an official page how they apply to a returning individual. If a large share of your income is investment income from abroad, ask an adviser whether this exemption could apply before assuming it does or does not.
Records the Nigerian return will need
- UK tax calculations (SA302 or tax year overview) showing UK tax on each income item.
- Rental statements from your UK letting agent.
- Pension payslips or P60s, kept to show the income is a pension.
- UK bank interest statements.
- A note of the naira rate used to convert each figure and its source.
NiDCOM's guide says personal returns are due by 31 March and that your NIN serves as your tax ID. For the UK side of credit relief, read foreign tax credit relief under the treaty, and for a plain-English summary of the treaty from the Nigerian side, the UK-Nigeria double tax treaty.
Where Pryme fits
A Pryme Personal Account can receive pounds from UK rent or a pension into its own sterling balance and hold naira alongside it (multicurrency), so you convert when you decide rather than when the money lands. Outside Nigeria, Pryme's activities are carried out through regulated partners.
Questions people ask
Does Nigeria tax my UK rental income after I move back?
If you are resident in Nigeria, yes: it is part of your worldwide income. The UK can also tax it, and Nigeria gives credit for UK tax on the same income.
Is my UK pension taxed in Nigeria?
Under Article 18 of the UK-Nigeria treaty, pensions for past employment are taxable only in the state they come from, subject to exceptions for some older pensions.
Will I pay tax twice on UK income?
Usually not in full. Credit for the foreign tax and the treaty's allocation rules reduce or remove the double charge, though you may pay the difference where Nigerian tax is higher.
Does the Nigeria Tax Act tax non-residents on foreign income?
No. NiDCOM's guide says non-residents are taxed only on Nigerian-source income.
Sources
- PwC Worldwide Tax Summaries: Nigeria, taxes on personal income (reviewed 29 May 2026) · accessed Oct 2026
- PwC Worldwide Tax Summaries: Nigeria, individual residence (reviewed 29 May 2026) · accessed Oct 2026
- PwC Worldwide Tax Summaries: Nigeria, income determination (reviewed 29 May 2026) · accessed Oct 2026
- NiDCOM: NGEX Diaspora Guide to the Nigeria Tax Reforms 2026 (Jan 2026) · accessed Oct 2026
- GOV.UK: UK-Nigeria Double Taxation Convention (signed 9 Jun 1987) · 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.