The Nigerian government is set to modernize its tax collection process for online gambling through a landmark partnership with UK-based fintech company E-Technologies. This collaboration will see Nigeria’s Federal Inland Revenue Service (FIRS) adopt E-Technologies’ innovative Sentinal National Payment Gateway to efficiently collect gaming taxes at the point of transaction, marking a significant step toward regulating and expanding Nigeria’s online gambling industry.
Streamlining Tax Collection for Online Gambling
E-Technologies’ Sentinal system enables real-time tax deductions from player deposits, which are then sent directly to Nigeria’s government treasury. By utilizing this technology, Nigeria aims to capture revenue that previously slipped through regulatory gaps, ensuring a more transparent and accountable gaming tax system.
David Kicks, CEO of E-Technologies, highlighted the potential impact of the deal, especially for countries with rapidly growing online and mobile transaction ecosystems like Nigeria. “Governments in fast-developing nations are finding it challenging to keep up with eCommerce and mobile transactions. E-Technologies was created to address these needs, and we’ve assembled a strong team with expertise across fintech, eCommerce, and iGaming,” said Kicks.
The partnership also includes Nigeria’s National Lottery Regulatory Commission, which hopes this new system will attract high-tier international gambling operators to the Nigerian market.
Launching a Remote Operator Licence for Offshore Gaming Companies
As part of the agreement, Nigeria will introduce a five-year remote operator permit allowing international gaming and sports betting operators to serve Nigerian consumers legally without a local office. This permit comes with an initial $100,000 licensing fee and a subsequent annual fee of $50,000 for the next four years. Additionally, operators must comply with strict anti-money laundering (AML) requirements and pass a “fit and proper” assessment for responsible gambling practices.
Lanre Gbajabiamila, Director General of the National Lottery Regulatory Commission, expressed optimism about the potential benefits for Nigeria’s gaming industry. “Online gaming continues to grow rapidly in Nigeria, particularly on mobile. The adoption of E-Technologies’ Sentinal National Payment Gateway is a huge step in allowing us to capture gaming duty at source,” he noted. “We’re welcoming all responsible offshore gaming operators who meet our standards to apply for a remote operator permit.”
A Move Towards Transparent, Efficient Revenue Collection
As Nigeria looks to bolster its tax revenues, especially from emerging sectors, the partnership with E-Technologies addresses a growing need for modern tax collection methods. With the Sentinal system integrated into FIRS’s TaxPro Max portal, Nigerian authorities will have access to real-time tax reporting and monitoring capabilities, providing a clear picture of tax revenues generated from online gambling activities.
“The world is entering a challenging time where governments must increase tax revenue to fund essential infrastructure and public services,” stated Mohammad Nami, Executive Chairman of the FIRS. “Nigeria must innovate to ensure online transactions are taxed effectively. The Sentinal system allows us not only to collect revenue at the source but also to monitor it in real-time.”
A Growing Market Opportunity in Africa
Nigeria is positioning itself as a hub for regulated online gambling in Africa, a continent with rapidly expanding digital and mobile gambling markets. With its new remote operator licensing model, Nigeria is joining other African countries in capitalizing on the online gaming sector. In July, Swedish company Betsson entered Nigeria after acquiring a 60% stake in local sportsbook Betbonanza, while 888 recently launched in Kenya, Tanzania, Mozambique, and Zambia.
Nigeria’s proactive approach is mirrored in Zimbabwe, which is amending its Gambling Act to modernize tax collection for the gaming industry. Through this partnership, Nigeria aims to set a precedent in Africa for effective tax collection on online gambling, hoping to reap both economic and regulatory benefits from a fast-growing industry.
Looking Ahead: A Boost for Nigeria’s Economy
Nigeria’s adoption of E-Technologies’ Sentinal system highlights a strategic move to bring more foreign investment into the country’s regulated gaming industry. With real-time tax collection and transparent reporting, Nigeria hopes to create a more responsible, attractive market for international operators while ensuring the country captures critical tax revenues.
Gbajabiamila underscored the broader benefits: “We are proud to be the first country to adopt the Sentinal System, and we believe it will bring significant benefits to Nigeria.” As online gaming expands, the partnership could become a template for other nations in Africa, driving both regulatory progress and economic growth in the region’s online gaming industry.
