What Must Nigeria’s Gaming Industry Get Right on Tax, Compliance and Licensing in 2026?

With the federal government’s tax reforms now in full swing, Nigeria’s historic exit from the Financial Action Task Force’s (FATF) grey list, and the ongoing implementation of withholding tax on winnings, stakeholders in the Nigerian gaming industry convened for a monthly webinar organised by SLEC Africa, writes Ikenna Bede.

The session aimed to examine issues set to shape the trajectory of the gaming space in 2026. Tagged ‘Gaming Industry Outlook 2026: Regulatory Forecast, Market Trends, and Tax Reforms’, the session brought together regulators, operators, members of the Association of Nigerian Bookmakers (ANB), and representatives of the Economic and Financial Crimes Commission (EFCC) to clarify, inform, and address pressing issues within the gaming industry.

Lauding the efforts of all stakeholders in ensuring Nigeria was removed from the grey list, Compliance and Financial Crime Risk Specialist (CAMS), Folashade Oluwasanya, encouraged all parties not to rest on their oars. She clarified that sustained, effective implementation of policies remains a fundamental element to staying off the list permanently. This is especially vital as regulatory standards evolve regularly to tackle new problems; for instance, the 2001 terror attacks on the United States led to a strict review of global standards and the introduction of eight additional Special Recommendations on Terrorist Financing.

Oluwasanya reiterated the need for a risk-based approach alongside a documentation-driven framework. This enables operators to become more proactive in testing their assessments in real-time and plugging loopholes. Such measures strengthen the prospects of attracting increased local and foreign investment.

On the issue of KYC, where most operators avoid demanding excessive documentation until a payout to discourage punters, she noted that “KYC is an ongoing process, from the beginning stages, during, and after winnings”. She advised that operators invest in technologies that can help them harness the most from a punter’s basic information to build a formidable database.

The tax reforms that took effect on January 1, 2026, have left much of the gaming industry uncertain about their application, especially for offshore platforms. Adedoyin Oriadetu, a tax specialist, advised gaming operators to ensure their cross-border fee and revenue arrangements reflect fair-market pricing. He noted the need for clear records and proper documentation to justify platform costs and related charges, warning that weak or unclear pricing could result in disallowed expenses and higher tax assessments.

Echoing Oriadetu’s sentiments, Olabimpe Akingba, Head of Responsible Gaming at pawaTech, advised domiciled gaming operators to gain a first-hand understanding of the newly rolled-out policies by appointing compliance officers within the country to avoid attracting additional taxes.

“Geolocate. Get your data and use it as evidence of your presence in different states of the Federation. Regulators in each state also need to be strategic to avoid wrecking the industry,” Akingba said.

She explained that these nuances often put domiciled operators at odds with regulators, who tend to be enforcement-driven rather than case-by-case. She added that proactive measures to educate operators about these challenges are essential for the industry to reach a sustainable level.

Following the dissolution of the NLRC, operators still seek clarity on the validity of their long-term licenses. Director General of the Oyo State Gaming Board, Olajide Boladuro, recommended that affected operators first join the ANB to simplify data compilation for negotiations on new licenses. He also stated that operating with an NLRC-issued license is now illegal, noting that joining the ANB provides a smoother onboarding process.

Furthermore, the issue of operators absorbing withholding taxes on winnings was tabled. The panellists reached a consensus that this is an economically unviable route for operators, even as a short-term strategy.