NewStats: 3,259,508 , 8,170,369 topics. Date: Sunday, 25 May 2025 at 11:46 AM 4x6o35

In a move that could send shockwaves through immigrant communities, lawmakers in the United States have introduced a draft bill proposing a 5 per cent excise tax on all remittances sent abroad.

The bill, unveiled by House Republicans on Monday, targets financial transfers from US residents to recipients in foreign countries.

While it broadly affects immigrant families, the proposed tax poses a challenge for Nigeria, a country heavily dependent on funds sent by its diaspora.

Between January and October 2024 alone, Nigeria received $4.22 billion in diaspora remittances through International Money Transfer Operators (IMTOs), according to Central Bank of Nigeria (CBN) Governor Olayemi Cardoso.

However, the CBN did not specify what portion of these funds originated from the US.

“There is hereby imposed on any remittance transfer a tax equal to 5 percent of the amount of such transfer,” the proposed legislation states.

The tax would be paid by the sender and collected quarterly by the US Treasury Department.

Verified US citizens would be exempt from the levy and could claim it as a credit.

The bill also exempts remittances sent via authorized providers by verified US senders.

This development is the latest in a series of tough measures under President Donald Trump’s istration, which has recently ramped up its immigration and trade policies.

In January, US Immigration and Customs Enforcement (ICE) listed nearly two million undocumented immigrants for deportation, while Trump also renewed calls to end birthright citizenship for children born to non-citizens.

The istration’s aggressive trade stance has also drawn global attention.

On March 2, the US imposed sweeping tariffs, including a 14 percent duty on Nigerian exports.

However, tensions between Washington and Beijing appear to be easing.

A May 12 agreement between the two economic giants will see US tariffs on Chinese goods drop from 145 percent to 30 percent, while China will slash its own duties on US imports from 125 percent to 10 percent.

https://www.vanguardngr.com/2025/05/nigerians-to-be-affected-as-us-moves-to-tax-diaspora-money-transfers/

Nlfpmod

Elon Trump don't have joy.

While it broadly affects immigrant families, the proposed tax poses a challenge for Nigeria, a country heavily dependent on funds sent by its diaspora.

diaspora Don't stop sending o.
Eye red over here

Great move

If it reduces the high rate of Nigerians scamming via money laundering than it’s fine. We really need to work together to change the perception of how we’re been treated out there

Haha una vote Emi lo kan ans u think japa will favour you. Dey play

Nigeria sef dey tax you for putting money in your own

Nice move

Trump is the master of the game

Make America Great Again

M A G A

Why na

Not good oo, abi US don broke?

Make them stop this tariff war abeg

Nigerians collecting right left center.

No more sending money back home be dat.

Many Nigerians in diaspora transfer money to Nigeria without those ed money transfer firms.

officialfysh:
If it reduces the high rate of Nigerians scamming via money laundering than it’s fine. We really need to work together to change the perception of how we’re been treated out there

Money laundering go increase self

hmm

dre11:



https://www.vanguardngr.com/2025/05/nigerians-to-be-affected-as-us-moves-to-tax-diaspora-money-transfers/

Nlfpmod

Gift card, Bitcoin dey.

dre11:



https://www.vanguardngr.com/2025/05/nigerians-to-be-affected-as-us-moves-to-tax-diaspora-money-transfers/

Nlfpmod

No wahala, we shall reciprocate well we'll..

More wahala for those who dey worship Trump!

Trump go fart for their nose tire!

officialfysh:
If it reduces the high rate of Nigerians scamming via money laundering than it’s fine. We really need to work together to change the perception of how we’re been treated out there

The report was not about Nigeria alone.

Hmm

This means that the sender is taxed twice. He pays income tax on receivables and a tax is then imposed on the same money when he is sending it overseas. That's double taxation and I am sure there are laws in the US prohibiting same.
This should be litigated in court. The chances of quashing this tax is high.

Mindlog:
Many Nigerian in diaspora transfer money to Nigeria without those ed money transfer firms.

Really? Maybe that's why they exempted transfers from verified vendors in the bill.

What is the percentage of Nigerians in America?

Politicians have Poor to tax. Poor has no one to tax.

Trump has f”d up his reserves on election now he’s looking to recoup his spendings so desperately.

Bonjovi13:
This means that the sender is taxed twice. He pays income tax on receivables and a tax is then imposed on the same money when he is sending it overseas. That's double taxation and I am sure there are laws in the US prohibiting same.
This should be litigated in court. The chances of quashing this tax is high.

Seems to me they are targeting undocumented immigrants. They are exempting some class.

The little 20k again?

U labour to earn dem tax am u wan con send home to plan ur retirement house/investment dem nack u 5 percent omo.

Hmmmm

bluefilm:
Nice move

Trump is the master of the game

Make America Great Again

M A G A

Why naa Russia or China do this one, Nigerians for de cry say China is wicked.
Nigerians have been tortured into believing anything from the USA is the Best

Dandsome:
Nigerians collecting right left center.

When they say, bind together and kick out corrupt Nigerian leaders,
they won't hear. They will run to UK, and US, because they think they're smart.
Oyibo people don't give a f*** .
They will just FIRE from their end.
UK's own na to use BLACK Kemi, to FIRE back black Nigerians.

All this will do is drive ppl to use unofficial money transfer agents. The imto apps will see a reduction in volume. Those that simply change money person to person by collecting dollars and giving you naira in naija will be the one to gain. 5 percent is a lot