Nigerian content creators subject to fresh tax rules on digital income

Nigeria’s creator economy has entered a new fiscal phase as sweeping tax changes kick into force this year, formally pulling content creators deeper into the country’s tax net.

The reforms, which took effect on January 1, form part of a broader government effort to expand revenue collection and modernise Nigeria’s tax system, as policymakers seek to raise the country’s tax-to-GDP ratio by 2027.

From January, income generated by Nigerian creators through brand partnerships, sponsored posts, advertising revenue, affiliate marketing, livestream gifts and other digital activities is explicitly recognised as taxable under federal law. Until now, much creator income sat in regulatory grey areas, particularly earnings generated online or paid by overseas brands and platforms.

The changes bring Nigeria more closely into line with markets such as the US and the UK, where creator income has long been treated as taxable self-employment earnings.

Under the new framework, self-employed individuals, including creators and freelancers, are required to declare their annual earnings. Income of up to ₦800,000 (around $550) per year remains tax-free, while earnings above that threshold are taxed on a progressive scale, with marginal rates reaching up to 25% for higher earners.

The laws also clarify how digital and cross-border income is treated. As in the US and UK, income earned via foreign platforms or paid by overseas brands may still be taxable if the individual is resident in Nigeria, aligning the system with international tax standards.

To support enforcement, Nigeria has overhauled how tax authorities track income. A newly established Nigeria Revenue Service has replaced the Federal Inland Revenue Service, with greater reliance on technology and data-sharing. In practice, tax authorities can cross-check banking, corporate and telecoms records and work with international partners to identify offshore income linked to Nigerian residents.

Rising frictions

The changes come amid growing friction around the structure of Nigeria’s creator economy, particularly the limited access to platform-led monetisation tools. Many Nigerian creators rely heavily on brand partnerships, affiliate income and audience gifts rather than direct platform payouts, even as global platforms monetise Nigerian audiences at scale.

Public attention on creator taxation intensified in August 2025, when TikToker Habeeb Peller Hamzat disclosed that the Lagos State Internal Revenue Service had issued him an alleged ₦36 million tax assessment.

Hamzat, popularly known as Peller, is widely followed for his livestream content and comedic skits and is among a small group of Nigerian creators who have built large audiences through frequent live broadcasts and audience interaction. He publicly disputed the assessment, questioning how the figure was calculated and saying he had not received government support or benefits linked to the tax demand.

The disclosure triggered wider discussion among creators about how digital income is assessed and the treatment of foreign earnings.

Alongside enforcement, the federal government has also turned to creators as part of its public education strategy, including initiatives to train selected content creators to help counter misinformation and explain the new tax rules to online audiences. Some creators have questioned the approach publicly, citing concerns around consultation and clarity.

As the laws take effect in 2026, Nigeria’s creator economy is now formally recognised within the tax system, placing digital income on the same footing as other forms of self-employed earnings.