In a bid to tap into the booming sports betting industry, the Federal Government of Nigeria is considering a tax scheme for the country’s sports betting industry.
Bello Maigari, the Executive Secretary of the National Lottery Trust Fund (NLTF), shed light on this proposal during the second edition of the biennial national gaming conference organized by the National Lottery Regulatory Commission (NLRC) in Lagos.
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“It is not out of place to look at some statistics that underscore the significance of this industry and situate its centrality in promoting the renewed hope agenda of this Administration,” Maigari shared during the conference, highlighting that Nigerians place 14 million bets online daily.
“As of my last knowledge update in September 2021, the global online betting market was estimated to be worth over $50 billion and has continued to grow significantly since then.
“Despite economic challenges in the country, Nigerians are spending billions of dollars annually on sports betting.
“In Nigeria, the online betting sector has seen exponential growth, with millions of citizens engaging in various forms of online gaming and betting.
“With a population of over 200 million people and the largest betting market in Africa, our country is making giant strides in the world of online sports betting.
“Currently, there are over 65 million Nigerians actively engaging in this activity, spending 15 USD on average every day,” he said.
Projections and Advocacy for Tax Framework
Looking ahead, the NLTF chief projects that the revenue from the online betting sector alone in Nigeria will reach over $256 million by the end of 2023, with an estimated annual growth rate of nearly 10%, reaching over $366 million by 2027.
Maigari urged the government to introduce a tax framework that would encourage the sports betting industry to contribute to Nigeria’s revenue.
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“Moreover, leveraging the gaming and betting industry as a tax contributor can help create a level playing field for both local and international operators,” he said.
“By establishing clear and equitable tax regulations, the Government can encourage foreign players to operate within our regulatory framework, ensuring that we benefit from their presence whilst safeguarding our citizens.”