FG clarifies direct tax collection from online gaming operators

The Federal Government has clarified the recently announced commencement of collection of taxes from online gaming operators, saying it is for those registered in the country but operating strictly outside the jurisdiction of Nigeria.

The clarification came on the heels of a recent statement from the Federal Inland Revenue Service that it had commenced the direct collection of taxes from online gaming operators.

The FIRS statement was said to have confused operators in the gaming industry as the National Lottery Regulatory Commission is the body recognised by law to handle the operations of the gaming business in the country.

However, the NLRC has said that there is no cause for alarm as it clarifies the category of gaming operators affected in the FIRS statement.

In a statement in Abuja, the Director-General of NLRC, Lanre Gbajabiamila, said the FIRS press release only applied to remote gaming operators operating strictly outside the jurisdiction of Nigeria.

The statement read in part, “The attention of the Management of the National Lottery Regulatory Commission (NLRC) has been drawn to several publications on various media platforms purportedly emanating from the Federal Inland Revenue Service (FIRS) with the caption “FIRS commences direct collection of taxes from online gaming operators.”

“These press articles have created uncertainty, panic, and confusion in the Gaming Industry in Nigeria as to the propriety and justification of this new tax regime.

“Therefore, it has become necessary for the NLRC as the Agency created by law to regulate Lottery/Gaming in Nigeria to make the following clarifications: a. Online Gaming Operators in Nigeria who are duly licensed and tax compliant are not subject to the tax referred to in the aforesaid publication; b. The FIRS press release only applies to Remote Gaming Operators operating strictly outside the jurisdiction of Nigeria.

“The NLRC deeply regrets any misconceptions these publications have caused to our esteemed Gaming Operators and other stakeholders in the industry in Nigeria.