Gaming operators in Nigeria stand to benefit significantly from the country’s new tax regime, with ESIRS Chairman Emmanuel Ekene Nnamani describing the reforms as pro-business measures designed to reduce burdens, encourage investment and drive industry growth.
ENUGU — The second day of the Enugu Gaming Conference 2026 ended on a strong note as industry leaders, investors and tax experts examined the future of taxation in Nigeria’s rapidly expanding gaming sector.
One of the most anticipated sessions of the conference, titled “Taxation Without Paralysis: Designing a Revenue Framework Nigeria’s Gaming Industry Can Survive,” focused on concerns surrounding the post-2024 regulatory environment and the implications of multi-state tax compliance for gaming operators.
However, discussions took a significant turn when the Executive Chairman of the Enugu State Internal Revenue Service (ESIRS), Mr Emmanuel Ekene Nnamani, outlined why Nigeria’s evolving tax architecture should be seen as an opportunity rather than a burden for businesses in the sector.
Addressing concerns over alleged multiple taxation and regulatory pressures, Nnamani said the new tax laws were deliberately structured to encourage business growth, promote investment and strengthen key sectors of the economy, including gaming.
“The new tax law is actually meant to be pro-citizens, pro-companies and pro-gaming industry,” Nnamani said.
“The tax law has relieved most companies in Nigeria from a majority of their tax burden, and the gaming industry is, in fact, one of the biggest beneficiaries of these reforms.”
He explained that the current framework moves taxation away from gross revenue and places emphasis on actual profitability, ensuring that companies operating under difficult economic conditions are not subjected to excessive tax obligations.
According to the ESIRS Chairman, several provisions in the new tax regime are particularly beneficial to gaming companies. These include:
Profit-Based Taxation: Companies are taxed on actual profits rather than gross earnings, reducing the burden on businesses experiencing temporary losses.
Research And Development Incentives: Expenses related to technology, innovation and research are now recognised as tax-deductible costs.
Regulatory And Licensing Relief: Contributions to industry-related causes and licence renewal costs are treated as operating expenses, while long-term licences can be amortised over time.
Nnamani noted that these reforms are intended to create a more predictable and investment-friendly environment for operators.
The ESIRS Chairman also addressed concerns over the 5 per cent withholding tax on player winnings and agent commissions, explaining that such deductions are liability-based taxes and do not constitute an additional tax burden on gaming companies.
“When we say you need to pay 5 per cent on winnings, that tax does not belong to the company,” he said.
“The company merely acts as a collection agent deducting at source. The tax is paid by the winner, not by the operator.”
He added that the same principle applies to withholding taxes on agent commissions, stressing that such mechanisms do not reduce corporate profits or operating margins.
Financial and tax experts, including representatives of KPMG, supported Nnamani’s position, noting that Nigeria’s tax reforms align with global practices in countries such as the United Kingdom, United States and South Africa.
The experts observed that while compliance across multiple jurisdictions remains a challenge, businesses with proper structures and transparent financial records are likely to experience lower effective tax rates under the new system.
Nnamani urged operators and investors to focus on sound corporate governance, proper accounting systems and professional financial management to maximise available incentives.
“What we need in the gaming industry is proper structuring of business,” he said.
“If the business is properly structured and professionals are hired to document finances, businesses can benefit significantly from the incentives available. The tax law strongly favours the gaming industry.”
The discussions at the Enugu Gaming Conference reinforced the view that Nigeria’s reformed tax regime is aimed at supporting innovation, encouraging investment and positioning the gaming industry for long-term growth.
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