Nigeria’s Tax Net Widens: Freelancers and Influencers Now in Focus
Nigeria is ramping up its tax collection efforts, and the digital economy is firmly in its sights. Starting January 2026, the country’s new tax laws will require freelancers and influencers to pay personal income tax, mirroring the obligations of traditional employees. This move, aimed at bolstering government revenue, signifies a major shift in how the nation views and taxes its burgeoning digital workforce. The maximum tax rate for these self-employed individuals will be capped at 25%.
Monitoring the Digital Frontier: How Nigeria Plans to Tax Freelancers and Influencers
The Nigerian government, through the new tax reforms enacted in June 2025, is targeting the growing incomes of freelancers and digital creators. Taiwo Oyedele, the chairman of the Presidential Fiscal Policy and Tax Reforms Committee, recently explained the strategy: individuals will be responsible for self-reporting their income, calculating their tax liability, and paying if their income exceeds a specified threshold. This self-assessment approach requires individuals to proactively declare their earnings. The government’s broader objective is to increase the tax-to-GDP ratio to 18% by 2027, a significant increase from the current level of less than 10%. Non-compliance with these new regulations carries substantial penalties, ranging from ₦50,000 for minor offenses to ₦1 million or potentially three years imprisonment for more serious breaches. This indicates the seriousness with which the government views tax evasion.
The inclusion of freelancers and influencers in the tax net is a crucial step towards achieving Nigeria’s revenue goals. This move reflects a growing trend across Africa as governments strive to adapt to the evolving digital landscape and capture a larger share of the economic activity taking place online.
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