dual citizenship
Dual citizenship is holding the nationality of two countries at once, which brings two sets of rights and sometimes two sets of tax obligations.
In plain English
A second passport is treated as a trophy in Nigeria. It is more usefully understood as a set of rights and a set of obligations, and people almost never count the second half.
Nigeria permits dual citizenship for those who are Nigerian by birth, which is why so many Nigerian families now hold two passports. The advantages are substantial and obvious. Freedom to live and work in another country. Travel without endless visa queues. Access to education, healthcare and financial systems. A second option if things at home become difficult.
The obligations are less discussed. Some countries tax their citizens on worldwide income regardless of where they live, and the United States is the significant example. A Nigerian American living in Lagos may still owe American filings on Nigerian income, and the penalties for not knowing this are severe.
There are also reporting requirements in many countries about foreign accounts and assets, which catch a great many people who were not hiding anything and simply did not know.
So take the second passport, by all means. Then find out precisely what it asks of you, particularly on tax, because the passport does not explain itself and the authorities are not sympathetic to surprise.
A Nigerian American returns to Lagos, earns well, and files nothing in the United States for six years, assuming that living abroad ended the obligation. It did not, and the penalties when it surfaces are considerable.
Questions people ask
Does Nigeria allow dual citizenship?
Yes, for those who are Nigerian by birth. The position differs for those who acquired Nigerian citizenship by other routes, so check carefully.
Will I pay tax twice?
Not usually, thanks to double taxation agreements, but you may still have to file in both places. Filing and paying are different obligations, and people confuse them.
Which countries tax worldwide income?
The United States is the prominent example, taxing citizens wherever they live. If you hold that passport, get proper advice regardless of where you reside.
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