Nigeria: Lagos Begins 5 Percent Withholding Tax On Gaming Winnings

20 February 2026
Leadership (Abuja)

The Lagos State Government has commenced the implementation of a 5% Withholding Tax (WHT) deduction on gaming winnings, in line with applicable Nigerian tax laws and regulatory directives governing the gaming industry.

The deduction applies to net winnings from licensed gaming platforms operating within Lagos State and is deducted at the point of payout. All licensed gaming operators in Lagos have been directed to comply immediately with the framework.

Under the new arrangement, 5% of qualifying gaming winnings will be automatically deducted before payment is made to players and remitted to the Lagos State Internal Revenue Service (LIRS) as the statutory tax authority.

According to the State Government, the measure forms part of Lagos' broader drive to strengthen tax compliance, transparency, and accountability in the rapidly expanding gaming sector.

Players are required to provide their National Identification Number (NIN) in compliance with KYC (know your customer) rules, while all deductions and remittances will be handled by licensed operators in line with regulatory requirements.

Players will receive their winnings net of the statutory deduction, with proper records maintained for transparency. The WHT deducted also serves as a tax credit to the player.

All licensed gaming operators in Lagos State have now been formally directed to commence the deductions with immediate effect.

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