Nigeria introduces an 11% tax on GGR and an annual license fee of 100 million for gaming operators

From January 2026, Nigeria will implement a unified gambling tax system, requiring all operators to pay 11% on Gross Gaming Revenue (GGR) along with an annual license fee of ₦100 million (around $60,000).

The Federal and State Gaming Regulators of Nigeria (FSGRN) have announced sweeping reforms to unify the country’s fragmented gambling tax regime. The changes, unveiled at a stakeholder meeting in Lagos, are aimed at streamlining regulation, ensuring fair revenue distribution to states, and strengthening oversight of both online and retail operations.

Under the new framework, every licensed operator — whether in sports betting, lottery, or casino gaming — will pay an annual license fee of ₦100 million per category, alongside a flat 11% tax on GGR. The tax is earmarked for “good causes” across Nigerian states. No distinction will be made between online and land-based operators.

Additionally, companies must implement geo-fencing or geo-tracking systems to ensure that betting activity and tax revenues are properly attributed to the state where play occurs. While the FSGRN Secretariat will collect the national reciprocity license fee, other taxes will go directly to the states.

The reform follows a Supreme Court ruling in late 2024 that affirmed gaming regulation falls under state jurisdiction, outside of the Federal Capital Territory. During the transition period, operators are also required to settle tax arrears accumulated since November 2024 under the previous federal regime.

Although welcomed by state regulators, industry representatives have raised concerns that the high license fee and tax burden could challenge smaller operators. The FSGRN has indicated it may consider phased payment options for arrears and will continue dialogue with stakeholders.

With Nigeria among Africa’s fastest-growing betting markets, the new tax and licensing structure marks a major step toward regulatory harmonization and increased state revenue, while potentially reshaping competition in the sector.