NRS Urges Creators to Formalise Businesses and Claim Tax Incentives
The Nigeria Revenue Service has encouraged content creators and other creative businesses to register formally, obtain tax identification numbers and keep accurate financial records. These steps can help them qualify for tax incentives, attract investment and build sustainable businesses, officials said.
The advice was given Thursday during a tax policy discussion at Creative Africa Nexus Weekend 2026 in Lagos. NRS representatives outlined how the country’s tax reforms could support creative entrepreneurs while improving compliance and investment.
Simeon Onyegbula, an assistant director in the NRS Field Operation Monitoring Department, said proper registration and record keeping were essential for accessing available reliefs. He urged creators to retain invoices, receipts and ledgers to verify business expenses and calculate taxable profits. Personal spending, he cautioned, cannot be claimed as a business cost unless it meets legal requirements.
Kazeem Lawal, an assistant director of tax at the agency, warned that creators earning significant income through social media and digital platforms could limit their growth by relying solely on personal bank accounts. Formal registration, he said, gives a business a distinct identity and can improve its chances of securing contracts, attracting investors and operating beyond its founder.
Lawal also said small businesses are exempt from some VAT collection obligations, although VAT may still apply to their taxable purchases. Taxpayers charged VAT incorrectly can seek a refund within 30 days, he added, without first undergoing an audit.
Mustapha Akaje, the NRS Director of Government Business South Directorate, said qualifying investments in sectors including the creative industries could receive a five per cent tax credit on capital expenditure of at least N250 million.
Businesses with annual turnover of no more than N100 million and fixed assets below N250 million may qualify for zero company income tax and exemption from the four per cent development levy, he said. Other incentives cover eligible startups, research and development, foreign income, overseas tax credits and export-focused businesses in free trade zones. To qualify for the free-zone exemption discussed, operators must export at least 75 per cent of their products or services.
Akaje added that small businesses no longer need separate exemption certificates, but must still file returns to show they meet the requirements.
Mohammed Abubakar, the NRS Executive Director of Finance and Corporate Services, cautioned that relief from double taxation across countries is not automatic. It can depend on Nigeria’s tax agreements with other nations and on where the taxpayer resides. He called for clearer explanations of complex rules for creative businesses.
The agency also announced an NRS Investment and Tax Advisory Hub and a Creative Economy Tax and Investment Initiative. Obinna Ihedioha, Executive Director of People, Stakeholders and Communication, said the platforms would help businesses navigate registration, tax compliance, incentives and investment opportunities.
Ihedioha said uncertainty can discourage entrepreneurs from formalising their businesses, recalling a Lagos creator who feared penalties after earning income for two years without filing tax returns. He said registration is more appealing when it provides practical benefits, including access to funding, markets, contracts and intellectual property protection.
The NRS plans to work with investors, financial institutions and development partners to support business formalisation, tax education and investment in the creative economy, he said.
