Amidst fierce debate in Nigeria over the future of the regulatory framework, authorities in Nigeria have moved to quell the confusion over whether wagers related to gambling are now exempt from value-added tax (VAT).
Though almost no operators applied VAT to a player’s stake, an update to the Nigerian Tax Act 2025 has listed “money, stakes or securities” related to all gaming verticals as VAT-exempt items.
The move clarifies a long-standing debate in Nigeria over whether betting services could be hit with VAT charges, as tax authorities clashed with operators. Earlier reports indicated that Nigeria’s Federal Inland Revenue Service was considering applying VAT to stakes, sparking pushback from industry stakeholders.
The change forms part of a wider shake-up of Nigeria’s tax landscape. In September, the Federation of State Gaming Regulators of Nigeria (FSGRN) announced a new 11% tax rate on gross gaming revenue (GGR) across all verticals, alongside a standardised licensing fee of ₦100 million (£52,540) annually.
Conflict remains
In the backdrop of this progress remains a wider conflict surrounding the future path of Nigeria’s emerging gambling market.
Currently, gaming is controlled on a state-by-state basis. However, federal legislators are pushing forward with the Nigeria Gambling Bill, despite backlash from state governments.
The bill aligns regulation and tax frameworks across Nigeria’s 36 states. It also updates current legislation, formed in 2005, to reflect the growth of remote gambling.
However, opponents have described the bill as “unconstitutional” and an illegal attempt to rewrite the law.
Speaking late last year at a conference held by the Coalition for Good Governance (CGG), the organisation’s leader, Nelson Ekujimi, said: “This is nothing short of legislative provocation and lawlessness, which stands condemned in all ramifications.
“If the Senate proceeds with this illegal bill, it would amount to a brazen defiance of judicial authority and a direct attack on the rule of law.”
The country’s gaming market is estimated to be worth approximately $3.6bn per year, largely driven by a surge in mobile engagement among Nigeria’s younger population. As such, Nigeria must resolve the conflict surrounding its future regulatory framework to ensure that it can reap the economic benefits of a flourishing industry.
