Taxation of Nigeria’s Digital Economy: Challenges and Prospects
Abstract The digital economy plays a fundamental role in shaping the economic landscape of nations, and Nigeria is no exception. As Nigeria’s digital space continues to develop rapidly, taxation in the digital sector of the economy has become a major challenge to tax authorities and by extension the government. Most businesses around the world are now using artificial intelligence and digital means to increase output. Hence, the need to provide tax laws that can effectively assess multinational companies that are non-resident in Nigeria but derive their income through digital services in Nigeria. This paper examines the challenges of taxation of Nigeria’s digital economy, the opportunities available in this sector and makes some recommendations on how the Federal Government and its agencies can effectively tax the digital economy. Keywords: Digitalisation, Digital economy, Digital taxation, Significant Economic Presence JEL Code: H2, H24, H25
Keywords: Digitalisation, Digital economy, Digital taxation, Significant Economic Presence
Citation: , & Oziegbe, D.J. (2025). Taxation of Nigeria’s Digital Economy: Challenges and Prospects. International Journal of Innovative Research in Accounting and Sustainability, 10(1), 107-116.