Nigeria Plans Tax Registration for Social Media Influencers and Content Creators
The Registrar General of the Corporate Affairs Commission (CAC), Hussaini Ishaq Magaji, announced a forthcoming requirement for social media content creators, particularly those on platforms like Instagram and TikTok with substantial followings, to register as businesses and commence tax payments to the government.
Magaji made this revelation during a meeting with the managing director of Opay, Dauda Gotring, and his team in Abuja, emphasizing the need for social media and content creators to contribute taxes to the federal government, considering the significant revenue they generate.
He stated, “This cannot go on; these groups of people are under mandate to register as a business considering the amount they make from content creation. The government is determined to ensure every business in Nigeria, no matter its nature or size, is registered with the CAC.”
Magaji further revealed that the CAC is in the process of registering an additional three hundred thousand business names from Opay, highlighting the importance of this initiative in expanding the tax net, promoting business growth, and generating more employment opportunities for Nigerians.
The Opay team expressed readiness to collaborate with the CAC to facilitate the registration of these businesses, emphasizing the need for compliance among social media users and content creators. Gotring noted that Opay’s mission is to ensure universal access to banking services, even in rural areas, and part of this effort includes encouraging businesses, no matter how small, to register with the CAC.
The move to register social media influencers and content creators as businesses has sparked controversy, with some arguing that it may stifle creativity and innovation in the digital space. However, proponents of the initiative assert that it is necessary to ensure fairness and accountability in tax compliance across all sectors of the economy.
As the government moves forward with its plan, social media users and content creators in Nigeria are urged to prepare for these changes and comply with the registration requirements to avoid penalties and legal consequences. The partnership between Opay and the CAC signifies a step towards enhancing transparency and accountability in the digital economy, ultimately benefiting the Nigerian business landscape.
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