By AdaTax Matters | November 6, 2026
The Nigeria Revenue Service (NRS) has urged content creators, social media influencers and other operators in Nigeria's creative industry to formalise their businesses, obtain Tax Identification Numbers (Tax IDs) and maintain proper financial records to access available tax incentives and investment opportunities.
The call was made during a tax policy discussion at the Creative Africa Nexus Weekend 2026 in Lagos, where NRS officials explained how Nigeria's ongoing tax reforms could support creative entrepreneurs, encourage compliance and attract investment into the sector.
The agency emphasised that formalising business operations goes beyond regulatory compliance, as it can improve business credibility, create access to corporate contracts and investment opportunities, and support long-term business sustainability.
Why Is the NRS Encouraging Content Creators to Register Their Businesses?
Speaking during the session, Simeon Onyegbula, Assistant Director in the NRS Field Operation Monitoring Department, explained that business registration, obtaining a Tax ID and maintaining accurate financial records are essential for entrepreneurs seeking to benefit from applicable tax incentives.
He encouraged content creators to retain invoices, receipts, ledgers and other supporting documents to establish their business income and substantiate allowable expenses.
He also cautioned that personal expenditure cannot automatically be treated as a business expense for tax purposes.
Similarly, Kazeem Lawal, Assistant Director of Tax at the NRS, observed that creators earning substantial income through social media and digital platforms could limit their commercial opportunities by operating exclusively through personal bank accounts without proper business records.
According to him, formalisation gives businesses a separate legal identity, improves credibility and creates opportunities to attract investors and secure corporate contracts.
Tax Incentives Available to Qualifying Businesses
The NRS also highlighted several incentives available under Nigeria's tax reforms that may benefit eligible businesses operating in the creative industry.
1. Zero Company Income Tax for Qualifying Small Companies
Companies with annual turnover not exceeding ₦100 million and fixed assets below ₦250 million may qualify for small-company status under the applicable provisions of the Nigeria Tax Act, 2025.
Qualifying small companies enjoy exemption from Company Income Tax (CIT) and the 4% Development Levy.
However, these exemptions do not remove the obligation to comply with applicable tax registration, record-keeping and filing requirements.
2. Five Per Cent Tax Credit on Qualifying Capital Expenditure
Mustapha Akaje, Director of Government Business South Directorate at the NRS, disclosed that qualifying investments in eligible sectors, including the creative industry, could attract a 5% tax credit on qualifying capital expenditure of at least ₦250 million.
This incentive is intended to encourage investment in eligible sectors and support business expansion, subject to the relevant statutory conditions.
3. Other Investment Incentives
The NRS also highlighted incentives relating to qualifying startups, research and development activities, foreign-source income, overseas tax credits and export-oriented businesses operating in free trade zones.
For qualifying free-zone operators, the agency explained that at least 75% of their products or services must be exported to benefit from the relevant exemption.
Small Businesses Must Still File Tax Returns
Another important clarification from the NRS concerns the filing obligations of businesses enjoying tax exemptions.
The agency explained that qualifying small businesses no longer require separate exemption certificates to establish their eligibility for the relevant exemptions.
However, they must continue filing applicable tax returns to demonstrate that they satisfy the statutory conditions.
This means that exemption from Company Income Tax does not translate into exemption from tax administration and compliance obligations.
VAT Obligations and Refunds
The NRS also clarified that qualifying small businesses are relieved of certain VAT collection responsibilities but may still bear VAT on taxable purchases.
Furthermore, Kazeem Lawal stated that taxpayers who are wrongly charged VAT could obtain refunds within 30 days without first undergoing an audit.
This clarification reinforces the importance of understanding the distinction between VAT collection obligations and VAT incurred on business purchases.
NRS Introduces Tax Advisory Support for Creative Entrepreneurs
In another development, Obinna Ihedioha, Executive Director of People, Stakeholders and Communication at the NRS, announced the establishment of an NRS Investment and Tax Advisory Hub and a Creative Economy Tax and Investment Initiative.
The initiatives are designed to provide guidance on business registration, tax incentives, investment opportunities and compliance requirements while strengthening engagement between the revenue service and creative entrepreneurs.
The NRS also indicated its commitment to working with investors, financial institutions and development partners to transform Nigeria's creative talent into sustainable businesses and employment opportunities.
What Content Creators Need to Know
The NRS announcement highlights the growing importance of treating content creation as a structured commercial activity rather than merely a social media engagement.
Content creators earning income from advertising, subscriptions, brand endorsements, platform revenue sharing and other digital activities should understand their tax obligations and maintain appropriate financial records.
The 2026 Personal Income Tax Guidelines also recognise income earned by content creators, influencers and other digital income earners as taxable income arising from a trade, business, profession or vocation.
Therefore, creators should:
- Understand the appropriate business registration structure for their activities.
- Obtain or retrieve their applicable Tax ID.
- Maintain accurate records of income and business expenses.
- Keep invoices, receipts, contracts and supporting documents.
- Understand the tax incentives for which they may qualify.
- Comply with applicable tax filing and payment obligations.
AdaTax Matters' Take
The NRS's engagement with content creators is a welcome development, particularly as Nigeria's creative economy continues to expand.
However, it is important to distinguish between registering a business name, incorporating a limited liability company and registering for tax purposes. These are not necessarily the same thing and may have different tax implications.
For instance, registering a business name does not automatically convert an individual's business income into company income subject to Company Income Tax. Sole proprietors generally remain subject to the applicable Personal Income Tax rules, while qualifying incorporated companies may access small-company exemptions under the Nigeria Tax Act.
The key consideration for content creators is not simply registering a business to obtain tax relief, but choosing the appropriate business structure, understanding the applicable tax treatment and maintaining proper records.
Ultimately, formalisation should create a pathway to business growth, investment, accountability and sustainable participation in Nigeria's creative economy.
Source: The Punch, Sami Tunji, November 6, 2026.
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