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Nigeria’s digital economy is now fully within the tax net. In 2026, the Significant Economic Presence (SEP) rules have been refined to target online businesses that generate revenue from Nigerian users, even without a physical office in Lagos or Abuja.
The ₦25 Million Threshold
A non-resident digital company is liable for Company Income Tax (CIT) if it earns ₦25 million or more annually from:
- SaaS: Cloud computing and software subscriptions.
- Streaming/Ads: Revenue from content consumed by Nigerians (e.g., YouTube, Netflix, Meta).
- Marketplaces: Commissions from connecting buyers and sellers in Nigeria.
For local startups, ensure you are claiming your E-commerce VAT credits correctly. For international tax law updates, visit the NRS website or Tope Adebayo LP for tech-specific tax insights.”