Administration of Stamp Duty in Nigeria


Stamp duty is a tax levied on physical and electronic instruments listed in the Schedule to the Stamp Duties Act (as amended). Some of such instruments include Receipts, Agreements, Contracts, etc. Instruments executed in Nigeria are required to be stamped on or before execution, however, a grace of 40 days from the first execution is provided; while unstamped or in- sufficiently stamped instruments first executed outside Nigeria should be stamped within thirty days after it is first received in Nigeria.

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FIRS Commences Automation of Taxes on Online Gaming Activities in Nigeria


By a Public Notice dated October 2022 and captioned “Real Time Direct Collection of Taxes from Online Gaming Transactions”, the Federal Inland Revenue Service (FIRS) notified the general public of the commencement of automation of the administration of tax on online gaming activities in Nigeria, with the objective of such automation being to simplify tax compliance for companies engaged in online gaming activities through deduction of taxes at transaction points and direct remittance to the Government’s Treasury.

It was announced in the Public Notice that the automation will be executed using the Sentinal Payment Gateway and Electronic Solutions (Sentinal Gateway). Consequently, the FIRS mandates all operators providing online gaming services in Nigeria to connect to Sentinal Gateway on or before 31 December 2022 as sanctions will be meted out on non-compliant companies. Likewise, foreign companies offering online gaming services in Nigeria are required to connect to Sentinal Gateway for the purpose of collection and remittance of taxes.

Our Comments:

There exists a multiplicity of gaming legislation at both federal and state levels yet, there remains an unresolved controversy as to whether it is the state or federal government that has the power to collect gaming taxes. It is, however, commonly argued that gaming, being an item found neither on the Exclusive nor Concurrent Legislative Lists, is a residual matter over which a State House of Assembly has powers in accordance with Section 4(7)(a)&(b) of the Constitution of the Federal Republic of Nigeria, 1999, as amended (CFRN).

This argument is strengthened by the decision of the Court of Appeal in Micheal Umo Edet V Joseph Chagoon & Anor.[1], wherein the Court held that “… Pool Betting being in the Residual List of Legislation, must necessarily be regulated by a law of the House of Assembly and not that of the National Assembly …”. Despite of the foregoing, the Federal Government has continuously engaged in a tussle with the State Governments over the collection of gaming taxes.

Nonetheless, to achieve efficient execution of the tax automation process, such that leakages are blocked and transparency and accountability are promoted, an Application Program Interface that would allow the FIRS monitor real-time the activities of qualifying companies is recommended. This would eliminate the potential leakages that may result from the non-disclosure of some transactions entered into by gaming operators.

Relatedly, it is quite perplexing that the Government has chosen to execute the automation of the administration of online gaming activities by utilizing the Sentinal Gateway, a creation of a foreign Fintech company (e-Technologies Global Limited), despite the abundance in Nigeria of indigenous fintech companies with a robust portfolio showing competence to provide such services. It is difficult to concoct a reasonable explanation for the choice of the Government.


Over the years, the gaming industry has contributed an insignificant percentage to the revenue target of the Federal Government when compared to the relatively robust revenue that the industry generates yearly. As such, the Government seeks to increase the revenue contribution from the gaming industry by automating taxation of online gaming activities such that there exists a central control system whereby activities of gaming operators are taxed at initiation and immediately remitted to the Government’s treasure. This system will eradicate leakages and ensure that appropriate taxes are charged on every online gaming transaction.

Please do not treat the foregoing as tax advice as it is only an expression of our Tax Information Service. All enquiries should please be directed to our TaxThursday Desk at; +234 700 TAXAIDE or any of our following personnel:

     Adeola Adefuye Associate  
           Bidemi Olumide Partner  

[1] [2008] 2 NWLR

Purported Suspension of Implementation of Excise Duty on Telecommunications


The Finance Act, 2020, (FA) amended Section 21 of the Customs and Excise Tariff, etc. (Consolidation) Act to impose an excise duty of 5% on telecommunication services provided in Nigeria. In furtherance of this provision of the FA, the Federal Government had through the Ministry of Finance and the Nigerian Customs Service announced that it would begin implementation of the proposed 5% excise duties on telecommunication sometime in 2023.

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Tax reliefs Available Under the Personal Income Tax Act

In Nigeria, the Personal Income Tax Act (PITA) is the principal legislation that governs the taxation of individuals, communities, families, trustees, and estates. The PITA imposes a tax on the total income of taxable persons subject to a few exemptions which may be found under the Third Schedule to the PITA (Third Schedule), Items One and Two of the Sixth Schedule to the PITA, or under any other relevant provision of the PITA such as Sections 19 & 20.

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Filing Season: Corporate Taxes Database


The Companies Income Tax Act (CITA) requires companies to file their income tax returns and pay their income taxes within six months after their accounting year-end. Most companies have their accounting period spanning from 1 January to 31 December and as such are required to file their income tax returns and pay their income taxes on or before 30 June of the following year. It is common practice for companies to file along with their income tax other corporate taxes such as National Information Technology Development Agency Levy (NITDA Levy), National Agency for Science and Engineering Infrastructure Levy (NASENI Levy), Police Trust Fund Levy (PTF Levy), and Tertiary Education Tax (TET).

In this TaxThursday Publication, we succinctly present salient factors to consider when filing corporate taxes in Nigeria.

Corporate taxes payable in Nigeria:

Companies Income Tax (CIT)

  Principal Legislation  CITA
  Tax Rate Section 9(1) CITA Section 40(1) CITA Section 105 CITA    Tax is chargeable on the profits of a company derived in, brought into, or received in Nigeria (provided such profits are not subject to tax under the Capital Gains Tax Act, Petroleum Profits Act, or Personal Income Tax Act).   The applicable tax rates are indicated below.   20% of total profits of companies that earn gross turnover greater than N25,000,000 but less than N100,000,000.   30% of total profits of companies that earn a gross turnover of N100,000,000 or above.   Companies that earn a gross turnover of N25,000,000 or less are exempt from CIT.
  Tax relief on Interest on foreign loans Section 11(1) CITA      Interests payable on foreign loans are partially exempt from tax as shown in the table below.   Repayment Period   Grace Period Including Moratorium Tax Exemption Above 7 years   Not less than 2 years 70% 5-7 years   Not less than 18 months 40% 2-4 years   Not less than 12 months 10% Below 2 years   Nil Nil           Repayment period means the agreed tenor of the loan facility provided that where the loan is paid before expiration of the agreed time, the tax exemptions provided under the CITA would be adjusted accordingly.   Moratorium refers to the period at the beginning of the loan term during which the borrower is not expected to make any repayment of principal or interest.