Nigeria Revenue Service urges content creators to register for tax incentives

The Nigeria Revenue Service (NRS) is urging professionals in the creative sector, including influencers and content producers, to register their ventures formally. During a tax policy panel held on Thursday, November 5, at the Creative Africa Nexus Weekend 2026 in Lagos, NRS officials emphasised that registering businesses and obtaining tax identification numbers are essential steps to accessing available tax incentives and investment opportunities. The agency stated that compliance with the country’s new tax laws would support creative entrepreneurs, improve overall compliance, and help attract investment to the sector.

Simeon Onyegbula, an assistant director within the NRS Field Operation Monitoring Department, recommended that creative business owners keep accurate financial documentation such as ledgers, receipts, and invoices. He explained that these documents are necessary to establish actual taxable profits and support claims for business expenses. Onyegbula explained that individual expenditures do not qualify as business costs and that any claimed deductions must strictly adhere to legal provisions. He urged participants to comply with all relevant tax laws to fully enjoy the incentives available for business growth.

Kazeem Lawal, an assistant director of tax at the NRS, cautioned that high-earning creators relying exclusively on personal banking channels for their digital and social media income may hinder their commercial growth. Lawal noted that such practices could shut creators out of corporate contracts and investment opportunities. He argued that formalisation creates a pathway to growth and sustainability, giving businesses separate legal identities and improving their credibility. Adopting this corporate framework allows founders to obtain business contracts, draw in investors, and build companies that can endure after the founders depart.

Background

Mustapha Akaje, the director of the Government Business South Directorate at the NRS, outlined specific tax incentives available to the creative industry under the new regulations. He mentioned that qualifying creative enterprises might receive a 5% tax credit on capital investments totaling N250 million or more. Akaje explained that this credit applies to qualified capital expenditure investments in eligible sectors.

Furthermore, firms with fixed assets less than N250 million and yearly revenue under N100 million are potentially eligible for a zero company income tax rate. Such small-scale operations are also relieved from paying the 4% development levy. Akaje observed that while small enterprises must still submit tax returns to prove their qualification for the zero tax rate, they no longer require distinct exemption certificates to access these benefits.

Lawal also clarified the value-added tax (VAT) implications for small businesses. While small businesses are relieved of certain VAT collection duties, they may still pay VAT on taxable purchases. He further stated that taxpayers subjected to incorrect VAT charges may seek reimbursement within 30 days without the need for a preliminary audit. According to Obinna Ihedioha, the NRS executive director of People, Stakeholders and Communication, the NRS intends to launch an Investment and Tax Advisory Hub to assist creative entrepreneurs with registration, regulatory compliance, and investment prospects.

Why it matters

The push for formalisation aims to integrate the creative economy more fully into the national tax system while providing tangible financial benefits to compliant operators. By obtaining tax IDs and maintaining records, creators can access specific reliefs such as zero company income tax for small entities and tax credits for significant capital investments. This shift is intended to enhance the credibility of creative businesses, making them more attractive to corporate partners and investors. The NRS emphasised that operating through personal accounts without proper records limits commercial potential, whereas formal registration supports long-term sustainability and growth within the industry.