AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
Yes. Under the Nigeria Tax Act 2025, a Nigerian-resident creator pays personal income tax on worldwide income, including YouTube, TikTok and brand-deal money, at banded rates where the first ₦800,000 of taxable income is taxed at 0%. Brands that are companies may deduct withholding tax (5% or 2% for resident individuals depending on how the payment is classified), which you can usually credit against your tax. Self-employed creators file an annual return with their state tax authority by 31 March.
Creator income is personal income
If you make money as a content creator and you are resident in Nigeria, that money is income for tax purposes, whether it comes from a Nigerian brand, a foreign platform or a fan. BusinessDay's explainer of the Nigeria Tax Act 2025 (January 2026) notes that residents are taxed on worldwide income, including overseas freelance income, and that residence includes being in Nigeria for 183 days in a 12-month period. Most creators are not employees, so no employer deducts PAYE for them; they are self-employed and responsible for their own returns.
This is information, not tax advice. Your position depends on your total income, expenses and whether you trade through a registered company.
The rates that apply
| Taxable income band (per year) | Rate |
|---|---|
| First ₦800,000 | 0% |
| Next ₦2,200,000 | 15% |
| Next ₦9,000,000 | 18% |
| Next ₦13,000,000 | 21% |
| Next ₦25,000,000 | 23% |
| Above ₦50,000,000 | 25% |
Source: BusinessDay, "Nigeria Tax Act 2025 personal income tax bands", 12 January 2026. Rent relief of 20% of rent paid, capped at ₦500,000, is also available under the Act, according to the same report.
Income from foreign platforms
Payments from YouTube (through AdSense), TikTok's creator programmes or foreign brands are part of your worldwide income. Convert them to naira for your records using the rate on the day you received them, and keep the platform's payment statements. If a foreign platform deducts its own country's tax before paying you, keep that record too, along with any tax form the platform asked you to complete; whether you can claim relief for it depends on tax treaties and the facts, so ask a tax adviser.
Withholding tax on brand deals
When a Nigerian company pays you for a campaign, it may deduct withholding tax (WHT) and pay it to the tax authority. Under the Deduction of Tax at Source (Withholding) Regulations 2024, effective 1 July 2024, PwC's summary gives these rates for resident individuals:
- Professional, consultancy, technical or management fees, and commission: 5%.
- Other services not specified elsewhere: 2%.
- Royalties to a non-corporate resident: 5%.
Which line a brand uses for influencer work depends on how it classifies the contract, so ask before you sign. Individuals are not required to deduct WHT, and small companies are exempt from deducting where the transaction is below ₦2 million and the supplier has a Tax ID, according to PwC. WHT is generally a credit against your final tax, not an extra tax, unless the law makes it final. Ask the brand for the WHT credit note; our guide to getting WHT credit notes back explains how.
A worked example
Example only. A Lagos-based creator earns ₦3,000,000 in a year: ₦1,000,000 from brand deals and ₦2,000,000 from platform payouts. Suppose ₦600,000 of costs are allowable (whether a cost is allowable is a question for a tax adviser), leaving taxable income of ₦2,400,000.
- First ₦800,000 at 0%: ₦0.
- Remaining ₦1,600,000 at 15%: ₦240,000.
- Tax for the year: ₦240,000.
- If the brands deducted 5% WHT on the ₦1,000,000 (₦50,000) and issued credit notes, the balance to pay would be ₦240,000 − ₦50,000 = ₦190,000.
This example ignores rent relief and other reliefs that might reduce the figure further.
Tax ID, filing and penalties
The Nigeria Tax Administration Act 2025 requires every taxable person to register and obtain a Tax ID (section 4). Failure to register attracts ₦50,000 for the first month and ₦25,000 for each later month (section 100(1)), and a company that awards a contract to an unregistered person faces a ₦5,000,000 penalty (section 100(2)), which is why brands increasingly ask for your Tax ID.
- Get your Tax ID; see Tax ID rules.
- Register with the tax authority of the state where you live; self-employed people file self-assessment there, as BusinessDay's explainer notes.
- Keep monthly records of every payout, invoice and WHT credit note.
- File your annual return by 31 March. BusinessDay (March 2026) reports a penalty for failing to file of ₦100,000 for the first month and ₦50,000 for each later month.
Records worth keeping
- Platform payment statements (AdSense, TikTok and others), saved monthly.
- Every brand invoice, the contract, and the amount actually received.
- WHT credit notes, matched to the invoice they relate to.
- Receipts for equipment, data and other costs you may claim, with dates.
- Your exchange rate record for each foreign payout.
Creators with large incomes sometimes trade through a registered company instead; companies are taxed differently, so take advice before you switch.
For more on side income generally, see tax on side hustle income, and for pricing campaigns with WHT in mind, how to price brand deals.
Where Pryme fits
Keeping creator income in one place makes the year-end return easier. A Pryme account holds NGN and USD with local details for each (see multicurrency), and you can generate a statement whenever your tax office or a lender asks for one.
Questions people ask
Do YouTubers pay tax in Nigeria?
Yes, if they are resident in Nigeria. Residents are taxed on worldwide income under the Nigeria Tax Act 2025, so AdSense payouts count as income alongside Nigerian earnings.
How much tax do influencers pay in Nigeria?
It depends on taxable income. The first ₦800,000 a year is taxed at 0%, the next ₦2.2 million at 15%, rising in bands to 25% above ₦50 million.
Do brands deduct withholding tax from influencer payments?
Companies may deduct WHT: 5% for professional fees or commission, or 2% for other services, for resident individuals under the 2024 Regulations. Ask for the credit note.
When do content creators file tax returns in Nigeria?
Individual annual returns are due by 31 March, filed with the tax authority of the state where you live.
Sources
- BusinessDay: Nigeria Tax Act 2025 personal income tax bands explained (12 Jan 2026) · accessed Oct 2026
- PwC Nigeria: Highlights of the Deduction of Tax at Source (Withholding) Regulations 2024 · accessed Oct 2026
- Nigeria Tax Administration Act 2025 (gazetted PDF) · accessed Oct 2026
- BusinessDay: Eight common tax filing errors and their penalties (31 Mar 2026) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.