The Nigerian digital economy is on fire right now. From TikTok dances to YouTube channels to Instagram skits, creators are making names for themselves and sometimes real money too. But here’s the part many people don’t talk about: once the money starts coming in, the tax man is watching. The Lagos State Internal Revenue Service (LIRS) and the Federal Inland Revenue Service (FIRS) are paying more attention to the digital space, and every creator needs to know what that means.
Taxes are not optional. If you earn income as a Nigerian, the law says you have to pay tax. Under the Personal Income Tax Act (PITA), this applies to money you make in Nigeria and abroad if you bring it back home. So yes, TikTok gifts, YouTube ads, sponsorship deals and affiliate links can all be taxed. If you run your platform as a company, then the Companies Income Tax Act (CITA) applies instead.
Lagos has even rolled out a plan called the Eko Revenue Plus Strategy to capture digital workers like influencers and freelancers. The goal is to pull more money from the growing online economy. With this kind of attention, it is risky to assume you are outside the system.
A lot of creators argue that they should not pay taxes because the government does not provide good roads, electricity or hospitals. The frustration is real, but the law does not work that way. Skipping taxes can lead to fines, audits or even arrest. Another common myth is that because platforms like YouTube already deduct taxes in the U.S., Nigerians do not need to pay again. The truth is Nigeria can still tax worldwide income earned by its residents. Double taxation treaties can sometimes reduce this, but they rarely cancel it completely.
Take for example the story of a TikTok creator hit with a 36 million naira tax bill. At first glance it feels impossible, but such numbers often include estimated income, penalties and years of unpaid taxes. If you publicly claim big earnings, tax authorities can use those figures against you. Without proper records, you are left with inflated numbers that are hard to challenge.
So what can creators do to avoid this kind of shock? Start by filing annual returns with LIRS if you live in Lagos or with your state’s revenue service. If your income is getting big, think about registering as a business. Keep records of everything you earn and spend. Hire a tax consultant if you can, because they know how to deal with the system. Always put aside a portion of your monthly earnings for tax so you are not caught off guard. And keep your eyes open for policy updates, because digital economy rules are changing fast.
At the same time, creators should not stop holding government accountable. It is fair to question where tax money goes when services are lacking. In fact, being tax compliant gives you even more reason to demand transparency. Paying tax should not silence you, it should make your voice stronger.
Content creation today is a career, not just a side hustle. And like every career, it comes with responsibilities. Before you monetise your platforms in Nigeria, know how tax applies to your income streams. The law expects it, and ignorance will not save you. So create, entertain, and grow your brand, but remember to build tax compliance into your strategy. That way you protect your earnings, avoid stress with the authorities, and show that Nigerian creators are professionals who can thrive both online and offline.
