Nigeria Revenue Service
Says business registration and accurate record-keeping were essential to accessing applicable tax reliefs.
The Nigeria Revenue Service has urged content creators and other operators in the creative industry to formalise their businesses, obtain tax identification numbers and maintain proper financial records to access available tax incentives and investment opportunities.
Officials of the agency made the call during a tax policy discussion on Thursday at the ongoing Creative Africa Nexus Weekend 2026 in Lagos, where they explained how the country’s tax reforms could support creative entrepreneurs, improve compliance and attract investment.
Speaking during a panel session, an Assistant Director in the NRS Field Operation Monitoring Department, Simeon Onyegbula, said business registration and accurate record-keeping were essential to accessing applicable tax reliefs.
“Formalise, register, and obtain a tax ID. Keep proper records with all of this, and comply with all the relevant tax laws. Enjoy all the incentives available, and then grow,” he said.
Onyegbula explained that taxpayers must retain invoices, receipts, ledgers and other financial documents to substantiate business expenses and determine their actual taxable profits.
He warned that personal expenditure could not be treated as business costs, adding that deductions must satisfy legal requirements.
An Assistant Director of Tax at the NRS, Kazeem Lawal, said creators earning substantial income through social media and digital platforms risked limiting their commercial potential by operating entirely through personal bank accounts without proper records.
“Formalisation is what creates the pathway to growth and then sustainability in business,” he said.
According to him, registration gives businesses separate legal identities, improves credibility and enables entrepreneurs to secure corporate contracts, attract investors and establish enterprises capable of surviving beyond their founders.
Lawal also clarified that small businesses were relieved of certain VAT collection responsibilities but could still be charged VAT on taxable purchases.
He added that taxpayers wrongly charged VAT could obtain refunds within 30 days without undergoing an audit beforehand.
Speaking on tax incentives, the Director of Government Business South Directorate at the NRS, Mustapha Akaje, said qualifying investments in eligible sectors, including creative industries, could attract a five per cent tax credit on capital expenditure of at least N250m.
“This tax credit is specifically saying that you have a 5 per cent tax credit on your investment that is based on qualified capital expenditure,” he said.
Akaje explained that companies with annual turnover not exceeding N100m and fixed assets below N250m could qualify for zero company income tax and exemption from the four per cent development levy.
He also outlined incentives covering qualifying startups, research and development, foreign-source income, overseas tax credits and export-oriented businesses operating in free trade zones.
According to him, qualifying free-zone operators must export at least 75 per cent of their products or services to benefit from the exemption discussed.
Akaje further disclosed that small businesses no longer needed separate exemption certificates but must continue filing returns to demonstrate eligibility.
The NRS Executive Director of Finance and Corporate Services, Mohammed Abubakar, cautioned that relief from international double taxation was not automatic.
He explained that eligibility could depend on applicable tax agreements between Nigeria and other countries, while jurisdiction over individual taxpayers also depended on their residence.
Abubakar called for further engagement to simplify complex tax provisions for creative entrepreneurs.
In his remarks, the Executive Director of People, Stakeholders and Communication at the NRS, Obinna Ihedioha, announced the establishment of an NRS Investment and Tax Advisory Hub and a Creative Economy Tax and Investment Initiative.
He said both platforms would provide guidance on registration, incentives, investment opportunities and tax compliance while strengthening engagement between regulators and businesses.
Ihedioha cited the experience of a Lagos-based creative entrepreneur who feared penalties after earning income for two years without filing tax returns, describing uncertainty as a major obstacle to formalisation.
“Uncertainty is a tax nobody collects, but everybody pays,” he said.
He maintained that entrepreneurs were more likely to enter the formal economy when registration offered tangible benefits, including access to finance, markets, contracts and intellectual property protection.
The official said the new initiative would support ongoing collaboration on tax education, business formalisation, investment facilitation, and policy dialogue, with possible policy changes where necessary.
“Our responsibility, therefore, is to make the formal path the easier path and, of course, reward it,” Ihedioha stated.
He added that the agency would work with investors, financial institutions and development partners to help transform Nigeria’s creative talent into sustainable businesses, employment and economic growth.
