How to declare gambling winnings tax in Nigeria — step-by-step guide
A step-by-step guide on how to declare gambling winnings tax in Nigeria. Covers the 5% withholding tax auto-deducted on Lagos-licensed payouts, self-assessment Form A for offshore winnings, record-keeping obligations, and late-filing penalties.
The question Nigerian players face after a winning session is, in principle, straightforward: how to declare gambling winnings tax in Nigeria, and what is owed? The answer depends entirely on where the winnings originated. For residents paid out by an LSLGA-licensed operator in Lagos, the 5% withholding tax (WHT) on net winnings is deducted automatically at payout from February 2026 and remitted directly to the Lagos State Internal Revenue Service (LIRS) — the player receives net proceeds and, in most cases, has no further filing obligation on that amount. For winnings from offshore operators, or from any platform that did not deduct WHT at source, residents are required to self-assess and declare the income on the annual personal-income-tax return (Form A), filed with their state tax authority by 31 March.
This guide sets out the six-step procedure for both tracks. It covers the legal framework under the Deduction of Tax at Source (Withholding) Regulations 2024 and the Nigeria Tax Act 2025, the record-keeping requirements under SCUML/NFIU obligations, and the penalties for late or non-filing. This is general educational guidance; individual tax circumstances vary, and readers should confirm their position with their state tax authority or a qualified tax professional. editorial guidance is independent.
Table of contents
- What the law actually taxes (and who it applies to)
- Step 1 — Gather your records
- Step 2 — Calculate gross and net winnings
- Step 3 — Lagos-licensed payouts: the WHT is already deducted
- Step 4 — How to declare gambling winnings tax in Nigeria: offshore and undeducted winnings
- Step 5 — Submit via the tax portal
- Step 6 — Keep records for five years
- Frequently asked questions
- Conclusion
What the law actually taxes (and who it applies to)
The Deduction of Tax at Source (Withholding) Regulations 2024 brought winnings from “lottery, gaming and reality shows” received by non-corporate recipients within the WHT regime. The applicable rate is 5% for Nigerian-resident players and 15% for non-residents. Crucially, WHT applies to net winnings — the amount won less the original stake — not to gross turnover or total payout. An operator disbursing ₦50,000 on a ₦500 stake is required to deduct WHT on the ₦49,500 net win only.
The wider tax framework was restructured substantially in 2025. The Nigeria Tax Act 2025, the Nigeria Tax Administration Act 2025, and the Nigeria Revenue Service (Establishment) Act 2025 were all assented on 26 June 2025 and came into force on 1 January 2026. The Nigeria Tax Act 2025 consolidates the former Personal Income Tax Act (PITA), Companies Income Tax Act (CITA), VAT, Capital Gains Tax, and Stamp Duties into a single legislative framework. The former Federal Inland Revenue Service (FIRS) has been reconstituted as the Nigeria Revenue Service (NRS) from that date.
Resident vs non-resident, gross vs net
The practical impact of the 5% and 15% rates on common payout scenarios:
| Scenario | Stake | Gross win | Net win | WHT | Net payout |
|---|---|---|---|---|---|
| Resident, single bet | ₦2,000 | ₦102,000 | ₦100,000 | ₦5,000 (5%) | ₦95,000 |
| Resident, accumulator | ₦500 | ₦50,000 | ₦49,500 | ₦2,475 (5%) | ₦47,025 |
| Non-resident, single bet | ₦2,000 | ₦102,000 | ₦100,000 | ₦15,000 (15%) | ₦85,000 |
The net-win basis — rather than gross-win or turnover — is significant for accumulator bettors, where the stake represents a small fraction of the total payout. The deduction is calculated on the profit element, not on the full amount received.
Who must pay attention (and the exemption)
Players at offshore operators and players using any platform — domestic or foreign — where no WHT was deducted at source carry the self-assessment obligation. The Regulations provide one statutory exemption: winnings from a game of chance or reality show designed exclusively to promote entrepreneurship, academics, or technological and scientific innovation fall outside the WHT charge. Standard sports-betting and casino winnings do not meet this exemption.
| Scenario | Rate deducted | Action required | Proof to retain |
|---|---|---|---|
| Lagos-licensed platform — resident | 5% on net win (auto-deducted Feb 2026+) | Retain deduction confirmation; no further filing for that payout | Operator deduction receipt / LIRS remittance confirmation |
| Lagos-licensed platform — non-resident | 15% on net win (auto-deducted) | Retain deduction confirmation | Operator deduction receipt |
| Offshore platform — resident | None | Declare net win on Form A by 31 March | Bet-slip / transaction records; bank or wallet confirmations |
| Any platform — WHT not deducted | None | Self-assess and declare on Form A | Records per Step 1 below |
Step 1 — Gather your records
Organised documentation is the foundation of compliance, and for larger payouts it also functions as Source-of-Funds evidence with banks and fintech platforms. For each winning transaction, the relevant documentation includes the following: the winning slip or bet-slip ID together with the operator-issued transaction reference; payment confirmations — the bank NIP credit alert, OPay, PalmPay, or Moniepoint notification showing the exact amount credited; screenshots of WhatsApp or in-app payout notifications with timestamps; and dates and amounts for both the original stake and the gross winning payout.
The operator account statement, downloaded as a PDF or exported from the operator’s transaction history section, is typically the most authoritative single document. For LSLGA-licensed platforms, it records the stake, the gross win, the WHT amount deducted, and the net amount disbursed. This statement resolves most verification queries without supplementary documentation.
Records should be maintained in a dedicated location — cloud storage such as Google Drive or an archived email folder is acceptable — with the critical requirement that the records remain accessible for five years from the year of assessment in which the income arose. Step 6 addresses the retention obligations in detail.
Step 2 — Calculate gross and net winnings
The tax base is net winnings, not the total payout or the amount staked. The calculation formula is consistent across all platform types:
Net win = Gross win − Stake
WHT (resident) = Net win × 5%
Net payout (resident) = Net win × 95%
Two illustrative calculations:
| Example | Stake | Gross win | Net win | WHT (5%) | Net payout |
|---|---|---|---|---|---|
| 5-leg accumulator | ₦500 | ₦50,000 | ₦49,500 | ₦2,475 | ₦47,025 |
| Single casino win | ₦10,000 | ₦110,000 | ₦100,000 | ₦5,000 | ₦95,000 |
For offshore or undeducted winnings, the same formula determines the figure to report on Form A: the aggregate net win across all qualifying transactions during the year of assessment. The amount disclosed on the return is the net win figure — not the bank-account credit (which on LSLGA-licensed platforms already reflects the post-tax payout) and not the gross win. An interactive 5%/15% calculator covering both resident and non-resident scenarios is available at /legislation/tax-on-winnings/calculator/.
Step 3 — Lagos-licensed payouts: the WHT is already deducted
From February 2026, operators licensed by the Lagos State Lotteries and Gaming Authority (LSLGA) are required to deduct the 5% WHT on resident net winnings at the point of payout and to remit the deducted amount to the Lagos State Internal Revenue Service (LIRS) before funds are released to the player. The practical effect is that the resident player’s account is credited with 95% of net winnings; the tax obligation for that transaction has already been settled on the player’s behalf.
The document to obtain and retain is the operator’s deduction confirmation — a receipt or transaction summary showing the gross win, the stake, the net win, the WHT amount deducted, and the LIRS remittance reference. LSLGA-licensed operators including Bet9ja, BetKing, and SportyBet provide this within the transaction history section of the operator portal or on request through customer support.
Where a valid deduction confirmation is available, the resident player has no further personal-income-tax filing obligation on that payout for Lagos-state purposes. The receipt should nonetheless be retained for five years: it constitutes the primary defence in a Source-of-Funds review and confirms the tax position conclusively in the event of an LIRS query. Non-residents on LSLGA-licensed platforms receive the 15% WHT treatment on the same automatic basis.
Step 4 — How to declare gambling winnings tax in Nigeria: offshore and undeducted winnings
Offshore operators — those licensed in Curaçao, Anjouan, Malta (MGA), or any jurisdiction outside Nigeria — have no mechanism to deduct Nigerian WHT and make no remittances to Nigerian state or federal authorities. Under the personal-income-tax worldwide-income rules carried forward into the Nigeria Tax Act 2025, a Nigerian resident is required to declare all income, including offshore gaming winnings, regardless of where the income was earned or the currency in which it was received.
Offshore net winnings are reported on Form A, the annual self-assessment return for individuals. Form A is filed with the taxpayer’s own state tax authority — the LIRS for Lagos-based residents, the FCT Internal Revenue Service (FCT-IRS) for residents in Abuja, and the state IRS of the relevant state for all others. This is a common point of confusion: the NRS (Nigeria Revenue Service, formerly FIRS) administers federal taxes — company income tax, VAT — and is not the filing destination for individual personal-income-tax returns.
The filing deadline is 31 March, within 90 days of the close of the year of assessment. Winnings earned during the 2026 year of assessment (1 January to 31 December 2026) must therefore be declared by 31 March 2027. The amount reported is the aggregate net win for the full year across all offshore platforms, calculated per Step 2.
A note on the current enforcement picture: individual-level enforcement of offshore winnings declarations is presently limited. Payment-rail monitoring by the CBN and EFCC is, however, considerably more active — the April 2024 enforcement operation that froze over 105 fintech accounts linked to offshore-betting flows illustrates the scale of that surveillance capacity. Step 6 addresses the related record-keeping obligations.
Step 5 — Submit via the tax portal
Registration and submission of Form A are conducted through the relevant state tax authority’s online portal. The specific portal depends on the taxpayer’s state of residence.
Which portal — state IRS for individuals
The principal portals for individual filers:
- Lagos residents: LIRS e-Tax platform (e-tax.lirs.gov.ng)
- FCT / Abuja residents: FCT-IRS portal (irs.fct.gov.ng)
- All other states: the respective state IRS portal; the Joint Revenue Board coordinates state IRS operations across Nigeria
The submission procedure: register with the TIN (Tax Identification Number) if not already registered on the portal; create the Form A annual self-assessment return for the relevant year of assessment; enter total income for the year, including net gaming winnings as a separate line item; attach supporting documents — operator account statements, WHT deduction receipts for LSLGA-licensed platform winnings, and bank or wallet transaction records for offshore winnings; and submit before 31 March.
The filing acknowledgement generated by the portal should be downloaded and retained alongside the supporting records. The penalty for late filing under the Nigeria Tax Administration Act 2025 (s.101) is ₦100,000 for the first month of default and ₦50,000 for each subsequent month. A taxpayer who files three months late faces a minimum penalty exposure of ₦200,000 — an amount that in many cases exceeds the WHT liability on moderate winnings.
Step 6 — Keep records for five years (SCUML / NFIU / AML)
The recommended retention period for gaming-related financial records in Nigeria is five years. This figure aligns with the operational requirements of the Special Control Unit against Money Laundering (SCUML), the Nigeria Financial Intelligence Unit (NFIU), and the anti-money-laundering (AML) compliance obligations that apply to Nigerian financial institutions.
Banks and fintechs are required to file Currency Transaction Reports (CTRs) with the NFIU for single or cumulative transactions above ₦5,000,000 for individuals (₦10,000,000 for corporates), and to file Suspicious Transaction Reports (STRs) within 24 hours for transactions that exhibit unusual patterns. In April 2024, the CBN and EFCC froze over 105 fintech accounts linked to offshore-betting flows — a demonstration of the payment-rail enforcement capacity that exists even where individual-level WHT enforcement on offshore declarations remains underdeveloped. Players receiving large gaming payouts into a Nigerian bank account or mobile wallet are therefore advised to ensure their records are current before, not after, any query arises.
Documentation to retain for each year of gaming activity: operator account statements (full transaction history for the year); WHT deduction confirmations from LSLGA-licensed operators; payment confirmation alerts (NIP credits, OPay/PalmPay/Moniepoint notifications); the Form A filing acknowledgement for any year in which an offshore declaration was submitted; and bank or wallet statements showing all gaming-related credits. Further guidance on SCUML and NFIU bank-reporting thresholds is available at /legislation/bank-reporting/; Source-of-Funds documentation requirements are covered at /legislation/aml-source-of-funds/.
Frequently asked questions
Conclusion
The procedure for how to declare gambling winnings tax in Nigeria follows two well-defined tracks. Players receiving winnings from LSLGA-licensed operators in Lagos have the 5% WHT deducted automatically at payout from February 2026, with the tax remitted to the LIRS by the operator — the player’s obligation is to retain the deduction confirmation. Players with offshore winnings or any payout from which WHT was not deducted self-assess the aggregate net win on Form A, filed with their state IRS by 31 March, and retain supporting records for five years. The late-filing penalty under the Nigeria Tax Administration Act 2025 — ₦100,000 for the first month and ₦50,000 for each subsequent month — provides a clear financial incentive to meet the deadline.
This guide is general educational guidance and does not constitute personal tax advice. Readers should confirm their position with a qualified tax professional or their state tax authority. Gambling should be approached as entertainment. For support with problem gambling, contact Gamble Alert on +234 916 295 7989 or visit gamblealert.org. Participation is restricted to persons aged 18 and over.