FG clarifies gaming taxes to be collected by FIRS

FG clarifies gaming taxes to be collected by FIRS

*Nigeria licensed online operators to deal with NLRC

The Federal Government, weekend, clarified the controversy surrounding the collection of taxes from registered online gaming operators in the country.

The clarification came on the heels of a recent statement from the Federal Inland Revenue Service, FIRS, to the effect that it (FIRS) has commenced direct collection of taxes from online gaming operators.

The FIRS statement was said to have confused the operators in the gaming industry as the NLRC is the body recognized 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 that are affected in the FIRS statement.

In a statement in Abuja, the Director-General of NLRC, Lanre Gbajabiamila, explained that the FIRS press release only applies 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. “