The Nigeria Revenue Service (NRS) has urged content creators and other operators in Nigeria’s creative industry to formalise their businesses, obtain tax identification numbers and maintain proper financial records to benefit from available tax incentives and investment opportunities.

Officials of the agency made the call on Thursday during a tax policy discussion at the ongoing Creative Africa Nexus Weekend 2026 in Lagos.

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They explained how the country’s tax reforms could support creative entrepreneurs, encourage compliance and attract investment into the sector.

An Assistant Director in the NRS Field Operation Monitoring Department, Simeon Onyegbula, said business registration and accurate financial records were essential for entrepreneurs seeking applicable tax reliefs.

“Formalise, register, and obtain a tax ID. Keep proper records with all of this, and comply with all the relevant tax laws. Enjoy all the incentives available, and then grow,” he said.

Onyegbula explained that taxpayers must retain invoices, receipts, ledgers and other financial documents to substantiate business expenses and establish their actual taxable profits.

He cautioned that personal spending could not be classified as business expenditure, stressing that deductions must meet the requirements of the law.

An Assistant Director of Tax at the NRS, Kazeem Lawal, said creators earning substantial income through social media and other digital platforms could undermine their commercial prospects by operating solely through personal bank accounts without proper financial records.

“Formalisation is what creates the pathway to growth and then sustainability in business,” he said.

Lawal said registering a business gives it a separate legal identity, strengthens its credibility and improves its chances of securing corporate contracts, attracting investors and building an enterprise that can outlast its founder.

He also clarified that small businesses were relieved of certain VAT collection responsibilities but could still pay VAT on taxable purchases.

According to him, taxpayers who are wrongly charged VAT can obtain refunds within 30 days without first undergoing an audit.

On tax incentives, the Director of Government Business South Directorate at the NRS, Mustapha Akaje, said qualifying investments in eligible sectors, including the creative industries, could attract a five per cent tax credit on capital expenditure of at least N250m.

“This tax credit is specifically saying that you have a 5 per cent tax credit on your investment that is based on qualified capital expenditure,” he said.

Akaje added that companies with annual turnover not exceeding N100m and fixed assets below N250m could qualify for zero company income tax and exemption from the four per cent development levy.

He also outlined incentives for qualifying startups, research and development activities, foreign-source income, overseas tax credits and export-oriented businesses operating in free trade zones.

According to Akaje, qualifying businesses operating in free zones must export at least 75 per cent of their products or services to benefit from the exemption discussed.

He further said small businesses no longer needed separate exemption certificates but were still required to file tax returns to demonstrate their eligibility.

The NRS Executive Director of Finance and Corporate Services, Mohammed Abubakar, cautioned that relief from international double taxation was not automatic.

He explained that eligibility could depend on the tax agreements in force between Nigeria and other countries, while the tax jurisdiction applicable to an individual could also depend on their residence.

Abubakar called for further engagement to make complex tax provisions easier for creative entrepreneurs to understand and apply.

Also speaking, the NRS Executive Director of People, Stakeholders and Communication, Obinna Ihedioha, announced the establishment of an NRS Investment and Tax Advisory Hub and a Creative Economy Tax and Investment Initiative.

He said the platforms would provide guidance on business registration, tax incentives, investment opportunities and compliance, while improving engagement between regulators and businesses.

Ihedioha cited the experience of a Lagos-based creative entrepreneur who feared penalties after earning income for two years without filing tax returns.

He described uncertainty about tax obligations as a major barrier to business formalisation.

“Uncertainty is a tax nobody collects, but everybody pays,” he said.

He maintained that entrepreneurs would be more willing to join the formal economy when registration offered practical benefits, including access to finance, markets, corporate contracts and intellectual property protection.

According to him, the new initiative would support collaboration on tax education, business formalisation, investment facilitation and policy dialogue, with possible policy adjustments where necessary.

“Our responsibility, therefore, is to make the formal path the easier path and, of course, reward it,” Ihedioha stated.

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He added that the NRS would work with investors, financial institutions and development partners to help turn Nigeria’s creative talent into sustainable businesses, jobs and broader economic growth.