The Nigeria Revenue Service (NRS) has urged content creators and other operators in Nigeria’s creative industry to formalise their businesses, obtain Tax Identification Numbers (TINs) and maintain proper financial records to benefit from available tax incentives and investment opportunities.
The agency made the call during a tax policy discussion on Thursday at the ongoing Creative Africa Nexus Weekend 2026 in Lagos, where officials explained how Nigeria’s tax reforms could support creative entrepreneurs, encourage tax compliance and attract investment into the creative economy.
Speaking during a panel session, Assistant Director in the NRS Field Operation Monitoring Department, Simeon Onyegbula, said business registration and accurate financial records were essential requirements for accessing applicable tax reliefs.
He advised creative entrepreneurs to register their businesses, obtain tax identification numbers and comply with relevant tax laws to take advantage of available incentives.
Onyegbula explained that taxpayers must maintain invoices, receipts, ledgers and other financial documents to substantiate business expenses and establish their actual taxable profits.
He cautioned that personal expenses could not be classified as business costs, stressing that all deductions must meet the requirements of the law.
NRS Warns Content Creators Against Using Personal Accounts for Business
An Assistant Director of Tax at the NRS, Kazeem Lawal, said content creators earning substantial income through social media and other digital platforms could limit their business opportunities by operating exclusively through personal bank accounts without proper financial records.
According to him, formalising a business creates a pathway to growth and long-term sustainability.
Lawal explained that business registration provides a separate legal identity, improves credibility and makes it easier for entrepreneurs to secure corporate contracts, attract investors and establish enterprises that can operate beyond their founders.
He also clarified that small businesses were relieved of certain VAT collection responsibilities but could still pay VAT on taxable purchases.
The NRS official added that taxpayers who were wrongly charged VAT could obtain refunds within 30 days without first undergoing an audit.
NRS Highlights 5% Tax Credit for Qualifying Creative Investments
Providing further details on available tax incentives, the Director of Government Business South Directorate at the NRS, Mustapha Akaje, said qualifying investments in eligible sectors, including the creative industries, could attract a five per cent tax credit on capital expenditure of at least N250 million.
He explained that the incentive was designed to reward qualifying investments and encourage businesses to expand their operations.
Akaje also stated that companies with annual turnover not exceeding N100 million and fixed assets below N250 million could qualify for zero company income tax and exemption from the four per cent development levy.
Other incentives highlighted included provisions for qualifying startups, research and development activities, foreign-source income, overseas tax credits and export-oriented businesses operating in free trade zones.
According to him, eligible businesses operating in free trade zones must export at least 75 per cent of their products or services to benefit from the exemption discussed.
He further disclosed that small businesses no longer needed separate exemption certificates but were still required to file tax returns to demonstrate their eligibility.
NRS Explains Double Taxation Relief and Tax Residency
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 the tax jurisdiction applicable to individual taxpayers could also depend on their country of residence.
Abubakar called for increased engagement between the tax authority and creative entrepreneurs to simplify complex tax provisions and improve understanding of available reliefs.
NRS Establishes Investment and Tax Advisory Hub for Creative Businesses
In his remarks, the NRS Executive Director of People, Stakeholders and Communication, Obinna Ihedioha, announced the establishment of an NRS Investment and Tax Advisory Hub and a Creative Economy Tax and Investment Initiative.
He said the platforms would provide guidance on business registration, tax incentives, investment opportunities and compliance while strengthening engagement between regulators and businesses.
Ihedioha cited the experience of a Lagos-based creative entrepreneur who feared facing penalties after earning income for two years without filing tax returns.
He described uncertainty surrounding tax obligations as a major obstacle preventing entrepreneurs from joining the formal economy.
According to him, businesses are more likely to formalise their operations when registration provides tangible benefits, including access to financing, markets, corporate contracts and intellectual property protection.
He said the new initiative would support collaboration on tax education, business formalisation, investment facilitation and policy dialogue, including possible policy adjustments where necessary.
Ihedioha added that the NRS would work with investors, financial institutions and development partners to transform Nigeria’s creative talent into sustainable businesses, employment opportunities and economic growth.
The initiative is expected to strengthen the relationship between the tax authority and Nigeria’s growing creative sector by making business formalisation more beneficial and accessible to entrepreneurs.