NRS Urges Content Creators to Formalise Businesses, Pay Tax

The Nigeria Revenue Service (NRS) has urged content creators, social media influencers and other operators in the creative industry to formalise their businesses, obtain tax identification numbers and fulfil their tax obligations to benefit from available incentives and investment opportunities.

Speaking during a tax policy discussion at the ongoing Creative Africa Nexus Weekend 2026 in Lagos, officals of the NRS said operating through personal bank accounts without proper business registration and financial records could limit the growth potential of creative entrepreneurs, particularly their ability to attract investors, secure corporate contracts and access financing.

Assistant Director of Tax at the NRS, Kazeem Lawal, stressed the need for content creators earning substantial income through social media and other digital platforms to move beyond informal business arrangements to build sustainable enterprises. “Formalisation is what creates the pathway to growth and then sustainability in business,” he said.

According to him, registering businesses gives them separate legal identities, improves their credibility and positions them to attract investors, secure corporate contracts and establish operations that can survive beyond their founders.

He warned that creators who channelled business earnings entirely through personal bank accounts without proper records could undermine their commercial prospects. Lawal, however, clarified that small businesses were relieved of certain Value Added Tax (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.

Similarly, an Assistant Director in the NRS Field Operation Monitoring Department, Simeon Onyegbula, urged creative entrepreneurs to register their businesses, obtain tax identification numbers and maintain accurate financial records to access 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 stated.

Onyegbula explained that businesses must retain invoices, receipts, ledgers and other financial documents to substantiate their expenses and determine their actual taxable profits. He cautioned that personal expenditure could not be treated as business expenses for tax deduction purposes, stressing that all claims must meet the requirements of the law.

To encourage compliance, the Director of Government Business South Directorate at the NRS, Mustapha Akaje, disclosed that qualifying investments in eligible sectors, including the creative industry, could attract a five per cent tax credit on capital expenditure of at least N250 million.

Akaje further explained 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.

He said other incentives covered qualifying startups, research and development activities, foreign-source income, overseas tax credits and export-oriented businesses operating in free trade zones.

According to him, businesses operating in free trade zones must export at least 75 per cent of their products or services to qualify for the exemption. He also disclosed that small businesses no longer needed separate exemption certificates but must continue filing tax returns to demonstrate their eligibility.

Meanwhile, 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 to support business formalisation and improve tax compliance in the sector.

He said the platforms would provide guidance on registration, tax incentives, investment opportunities and compliance while strengthening engagement between the revenue agency and creative businesses.