Taxing Creativity in Nigeria and Other News

Given the debate over the WTO Moratorium (see above) Nigerian creatives are asking how do you tax a viral video? This has become an important issue since the Corporate Affairs Commission (CAC) and the Federal Inland Revenue Service (FIRS) declared their intention to register and regulate their activities under the Company and Allied Matters Act (CAMA) 2020. According to the CAC, its mandate is to enforce the CAMA 2020, which requires that any business, whether carried on by an individual or a company, must be registered with the commission. The CAC also contends that registering and taxing content creators will broaden the tax base, promote entrepreneurship, and generate more employment opportunities for Nigerians. However, the idea of taxing creativity is not popular.

In the heart of Nigeria’s Ekiti State, a ground-breaking initiative is taking shape – the Ekiti Knowledge Zone (EKZ), aims to transform the region into a hub for digital innovation and knowledge economy. The African Development Bank has committed $80m in loan financing for this state-led pioneering project, designed to foster linkages between educators, researchers, innovators, entrepreneurs, and industries, all within one location. In April 2023, the Federal Government of Nigeria conferred “free zone” status to the project under the Nigeria Export Processing Zones Authority (NEPZA) Act. This designation unlocks a plethora of incentives for private investors, including rent-free land, tax holidays and import/export duty waivers, fuelling an environment ripe for investment and innovation.