Thursday, October 8, 2026

Trump proposes new U.S. tax on remittances Nigerians, other immigrants send home

Nigerians are expected to bear the largest burden, losing approximately $215 million, with Senegal, The Gambia, and Liberia also to be affected by the bill.

• June 5, 2025
Donald Trump
Donald Trump signing document

Aside from its recent heavy slashing of foreign assistance and imposition of steep tariffs on various countries, President Donald Trump has proposed a bill aimed at taxing remittances sent to foreign countries.

The bill, which is subsumed under Mr Trump’s ‘One Big, Beautiful Bill’, allows the U.S. to take a cut of all remittances sent to foreign countries, a move believed to be detrimental to the survival of people, especially in low-income countries.

According to the New York Times, the passage of the will would be the latest sign of a U.S. retreat from Africa, after Mr Trump’s slashing of foreign aid and introduction of unprecedented tariffs on the African continent.

Critics observed that the proposed legislation would mandate immigrants to pay an additional 3.5 per cent federal tax on top of the roughly six per cent they pay banks and remittance companies, amounting to nearly $10 of every $100, which would make the U.S. the most expensive of the countries from which to send cash.

They noted that Nigerians would pay the most under the bill in absolute terms, losing approximately $215 million, with Senegal, The Gambia, and Liberia also expected to be affected by the bill.

Helen Dempster, a policy fellow and assistant director for the Migration, Displacement, and Humanitarian Policy Programme at the Centre for Global Development, said countries in Africa would be hit the hardest should the bill pass.

“For the poorest people on the planet, they are going to be hit twice by the various different steps that the U.S. administration is taking,” Ms Dempster said in an interview with the New York Times.

The policy expert noted that the bill intended to discourage people from relocating to the United States while forcing those in the country to consider self-deportation.

Analysts also described the proposed legislation as a designed attack on the magnanimity of the diaspora, adding it risks plunging millions deeper into hunger while pushing up illegal migration and slowing growth for African economies already mired in debt.

Abike Dabiri-Erewa, the chairwoman of the Nigerians in Diaspora Commission, did not immediately respond to a request seeking comments on the implications of the proposed legislation on Nigerians in the U.S.

Last month, Mr Trump offered to pay a $1,000 stipend as travel assistance to migrants who decided to deport themselves from the U.S. voluntarily.

Homeland Security Secretary Kristi Noem said the policy covered part of Mr Trump’s administration’s push to encourage immigrants to deport themselves as a way to help the president meet lofty immigration promises in the country.

We have recently deactivated our website's comment provider in favour of other channels of distribution and commentary. We encourage you to join the conversation on our stories via our Facebook, Twitter and other social media pages.

More from Peoples Gazette

Nigerian Bar Association

States

Independence: NBA urges Nigerians to expect better future

The NBA said that ordinary Nigerians should be deriving benefit from the subsidy removal rather than hardship.

farmers

Agriculture

FG tasks ECOWAS on leveraging financing strategies for agroecology

The federal government has urged stakeholders in the agriculture and finance sectors in the West Africa region to leverage financing strategies to enhance agroecology practices

Katsina State

Politics

Katsina youths pledge to deliver over 2 million votes to Atiku

“Katsina State is Atiku’s political base because it is his second home.”

Ondo State House of Assembly

Economy

Ondo assembly seeks faster C of O processing to boost investment 

The committee’s chairman, Abiola Oladapo, said efficient land administration was critical to creating an enabling environment for businesses.

Iziaq Salako (Credit: EnviromentNews)

Heading 4

Minister calls for greater involvement of oncology nurses in cancer care

The minister said cancer’s complexity made multidisciplinary collaboration essential.

Education

NOUN matriculates 70 inmates in Enugu custodial centre

Mr Nwakuche said the NCoS was committed to using education as an instrument for reformation.

Yahaya Inuwa

Agriculture

Gombe inaugurates state-wide livestock vaccination campaign

Mr Yahaya said the exercise was aimed at protecting animal health.

Olusegun Obasanjo

NationWide

Asaba Massacre: Obasanjo urges forgiveness, reconciliation

He described the massacre as one of the most painful and terrible aspects of the Nigerian Civil War.

ISIS supporter Sheikhdoon Mohamud

World

FBI nabs ISIS-linked Sheikhdoon Mohamud for plottting terrorist attack on Mall of America

He was arrested after buying an AK-47-style rifle, magazines and ammunition from an undercover FBI agent.