According to Muhammad Nami, Executive Chairman of the Federal Inland Revenue Service (FIRS), the government has begun deducting taxes at transaction points from online gaming transactions using the Sentinal National Payment Gateway and Electronic Solution.
According to the chairman, the Sentinal National Payment Gateway is a transaction processing system that allows Integrated Payment Services Providers to deduct taxes at the point of transaction and immediately remit the tax deducted to the government’s treasury.
The FIRS also stated that by December 31, 2022, all operators offering online gaming services in Nigeria must “connect to the Sentinal National Payment Gateway, deduct tax from online gaming transactions, and remit same directly to the relevant government’s treasury.”
The Chairman of the Federal Inland Revenue Service (FIRS) stated thus:
The FIRS is automating the administration of tax on online gaming using Sentinal National Payment Gateway and Electronic Solution.
Sentinal National Payment Gateway is a transaction processing system that enables Integrated Payment Service Providers to deduct taxes at transaction-points and remit the tax deducted directly to government’s treasury.
The deployment of Sentinal National Payment Gateway will simplify tax compliance for companies engaged in online gaming activities.
According to the notice, while it is not required for online gaming operators offering online gaming services from outside Nigeria to be incorporated in Nigeria, they are required by existing tax laws to connect to the Sentinal National Payment Gateway for the purpose of dedicating tax from gaming transactions of players in Nigeria and remitting same directly to the government purse.
