Nigeria: Lagos State Government to Implement Tax on Remote Workers and Digital Influencers

In a bid to boost revenue in the digital economy, the Lagos State government is set to launch the Resident Global Digital Citizen Tax Management System. This new system will target remote workers, foreign companies, and digital influencers operating within the state.

The system will encompass a range of initiatives, including the accreditation and licensing of digital economy operators. It will feature a comprehensive platform with an e-Portal, Marketplace, and Recovery Platform. The total estimated cost for building this platform, along with associated data mining, partnerships, stakeholder engagements, and communications, is ₦250 million.

Plans to enhance revenue from the digital economy include establishing a public data marketplace to license and monetize data from various government services. Additionally, the state aims to set up a fintech hub to foster digital payments, mobile money, lending, and crowdfunding.

Other initiatives under this digital economy strategy include the creation of the Lagos State Software Development Center, Lagos State Digital Economy Acceleration Hub, and Lagos State Advertisement Network. The government also intends to implement a Blockchain and Tokenization Agenda and collaborate with the Federal Government on Digital Service Tax (DST).

The document outlining these plans states, “To increase Lagos State’s Internally Generated Revenue (IGR) to ₦5 trillion during the current administration, a comprehensive and innovative approach is necessary. This includes leveraging technology, strengthening tax administration, expanding the tax base, exploring new revenue streams, and optimizing existing processes.”

These initiatives are part of the Lagos New Money Initiatives, which aim to unlock an additional ₦2.73 trillion in revenue, raising the IGR to ₦5 trillion. The digital economy is projected to contribute ₦750 billion, while the property industry is expected to add ₦1.5 trillion. The informal sector and the circular economy are anticipated to contribute ₦460 billion and ₦20 billion, respectively.