The Nigeria Revenue Service has told small businesses that they no longer need a separate exemption certificate to claim tax relief, but must continue filing returns to prove they qualify. The clarification came at an event in Lagos where officials urged content creators, influencers and other creative-industry operators to register their businesses, obtain tax identification numbers and keep proper records.
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What qualifies for zero company income tax
Mustapha Akaje, the NRS Director of Government Business for the South Directorate, said companies with annual turnover of not more than N100 million and fixed assets below N250 million may qualify for zero company income tax and exemption from the four per cent development levy. He added that businesses operating in free trade zones must export at least 75 per cent of their products or services to qualify for their exemption.
The removal of the certificate requirement cuts one administrative step. It does not remove the filing duty, which is how the NRS will check that a business still meets the thresholds.
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Why creators were the audience
Kazeem Lawal, an Assistant Director of Tax at the NRS, warned that creators earning substantial income through social media and digital platforms may be limiting their commercial potential by operating entirely through personal bank accounts without proper records. Officials said informal structures can leave creators unable to demonstrate revenue, expenses or profitability to lenders, investors and larger corporate clients.
A business that cannot show its numbers cannot borrow, cannot win corporate contracts and cannot claim the reliefs it is entitled to. The NRS message is that formal records are an asset, not a burden.
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VAT and income from abroad
Lawal also clarified the position on value-added tax. Small businesses are relieved of certain VAT collection responsibilities, but they can still be charged VAT on taxable goods and services they buy. Mohammed Abubakar, the NRS Executive Director of Finance and Corporate Services, cautioned that relief from international double taxation is not automatic. It depends on the tax agreements between Nigeria and other countries and on where the taxpayer is resident, which matters for any small business that earns income from abroad.
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What small business owners should do
The practical steps are straightforward: register the business, obtain a tax identification number, keep clean records and file returns every year, even when the business expects to pay no company income tax. A business below the thresholds that does not file cannot prove its eligibility, and an owner who cannot prove eligibility risks losing the relief.
