NRS Urges Content Creators to Formalise Businesses, Access Tax Incentives

The Nigeria Revenue Service (NRS) 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 benefit from available tax incentives and investment opportunities.

Officials of the agency made the call on Thursday during a tax policy discussion at the ongoing Creative Africa Nexus Weekend 2026 in Lagos, where they explained how Nigeria’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 financial records were essential for entrepreneurs seeking 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 were required to retain invoices, receipts, ledgers and other financial documents to substantiate business expenses and establish their taxable profits.

He warned that personal expenditure could not be classified as business expenses, noting that deductions must meet the requirements of the law.

Another Assistant Director of Tax at the NRS, Kazeem Lawal, said content creators earning substantial income through social media and digital platforms could limit their business opportunities by operating entirely through personal bank accounts without proper financial records.

“Formalisation is what creates the pathway to growth and then sustainability in business,” he said.

Lawal said business registration provided a separate legal identity, improved credibility and positioned entrepreneurs to secure corporate contracts, attract investors and build enterprises capable of operating beyond their founders.

He also explained that small businesses were relieved of certain VAT collection responsibilities but could still pay VAT on taxable purchases. According to him, taxpayers wrongly charged VAT could obtain refunds within 30 days without first undergoing an audit.

On investment incentives, the Director of Government Business South Directorate at the NRS, Mustapha Akaje, said qualifying investments in eligible sectors, including the creative industry, 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 added 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, eligible free-zone operators must export at least 75 per cent of their products or services to qualify for the exemption discussed.

Akaje further said small businesses no longer required separate exemption certificates but were still expected to file tax returns to demonstrate their 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 the tax jurisdiction applicable to individuals could also depend on their residence.

Abubakar called for further engagement to simplify complex tax provisions and make them easier for creative entrepreneurs to understand.

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 was worried about possible 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 argued that entrepreneurs would be more willing to enter the formal economy when registration offered practical benefits, including access to finance, markets, contracts and intellectual property protection.

Ihedioha said the new initiative would support collaboration on tax education, business formalisation, investment facilitation and policy dialogue, including possible policy adjustments where necessary.

“Our responsibility, therefore, is to make the formal path the easier path and, of course, reward it,” he 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.