How to declare gambling winnings tax in Nigeria
A practical step-by-step guide for Nigerian players: how to declare gambling winnings tax in Nigeria — gather records, calculate net winnings, handle 5% WHT deducted at source, self-declare offshore wins on Form A, and file with the right authority.
The question of how to declare gambling winnings tax in Nigeria has a more concrete answer than most punters expect. Under the Deduction at Source (Withholding) Regulations 2024 — gazetted 2 October 2024 and effective 1 January 2025 — operators are required to deduct 5% withholding tax (WHT) on resident net winnings at the point of payout and remit the amount directly to the relevant revenue authority. For many players on Lagos-licensed platforms, this means the tax obligation has been handled at source from February 2026, when the Lagos State Lotteries and Gaming Authority (LSLGA) began enforcing mandatory automatic deduction. However, players who win on offshore betting sites — those licensed in Curaçao, Anjouan, or under the Malta Gaming Authority — face a different reality: no automatic deduction mechanism exists, and the obligation to self-declare rests entirely with the individual taxpayer.
This guide walks through each practical step under the Personal Income Tax Act (PITA) and the 2025 tax-reform regime (Nigeria Tax Act 2025 and Nigeria Tax Administration Act 2025, both effective 1 January 2026): gather your records, calculate net winnings, verify whether tax was already deducted at source, self-declare offshore wins on your annual return, file with the correct authority by the 31 March deadline, and retain documentation for at least five years. This article is general information only and does not constitute personal tax advice — confirm your specific position with a qualified tax professional or your state Internal Revenue Service.
Table of contents
- Who has to declare winnings, and what the law says
- How to declare your winnings, step by step
- Special cases you may run into
- Common mistakes to avoid
- Frequently asked questions
- Conclusion
Who has to declare winnings, and what the law says
The legal basis is clear. The Deduction at Source (Withholding) Regulations 2024 bring winnings from lottery, gaming, betting, and reality shows within the scope of withholding tax for the first time in a codified, enforceable form. The rate for resident individuals is 5% on net winnings — the amount won minus the stake. Non-residents face a higher rate of 15%. From 1 January 2026, the broader 2025 tax-reform package is fully in force: the Nigeria Tax Act 2025 and the Nigeria Tax Administration Act 2025 replaced earlier statutes, and the Federal Inland Revenue Service (FIRS) was reconstituted as the Nigeria Revenue Service (NRS) under the NRS (Establishment) Act 2025. For a full breakdown of applicable rates and the legislative history, the parent article at /legislation/tax-on-winnings/ covers this ground; this guide keeps to the declaration procedure.
One distinction matters above everything else: for individual resident taxpayers, personal income tax is administered not by the federal NRS/FIRS but by the state revenue authority. Lagos residents file with the Lagos Internal Revenue Service (LIRS); residents of other states file with their own state IRS. The NRS/FIRS handles FCT-Abuja residents, non-residents, the armed forces, and companies. Telling a Lagos resident to “file with FIRS” is factually incorrect under current Nigerian tax law — a distinction this guide makes explicit throughout.
| Parameter | Resident individual | Non-resident |
|---|---|---|
| WHT rate on net winnings | 5% | 15% |
| Legal basis | Deduction at Source Regulations 2024; PITA | Deduction at Source Regulations 2024 |
| Filing authority | State IRS (e.g. LIRS for Lagos) | Nigeria Revenue Service (NRS/FIRS) |
| Annual return deadline | 31 March (preceding year) | 31 March (preceding year) |
| Auto-deduction at source (Lagos, from Feb 2026) | Yes — LSLGA-licensed operators | Not applicable |
Resident vs non-resident — which rate applies to you
The 5% rate applies if you are tax-resident in Nigeria — meaning Nigeria is your ordinary place of residence and the centre of your economic life. The 15% non-resident rate applies to players who receive Nigerian-source winnings but are not ordinarily resident in the country. If you divide your time between Nigeria and another country, or if your status is otherwise ambiguous, confirm your residence classification with a tax professional before filing. Misclassifying yourself carries interest and penalty implications under the Nigeria Tax Administration Act 2025.
How to declare your winnings, step by step
The procedure maps to six concrete actions. They follow in sequence — complete each before moving to the next.
Step 1 — Gather your records
Before any calculation or filing is possible, collect all relevant documentation: winning slips or bet-slip reference numbers, casino transaction references, payment or withdrawal confirmations (bank credit alerts, OPay or PalmPay notifications), the dates of each winning event, and the operator’s name together with its licence type — LSLGA-licensed, FSGRN-licensed, or offshore. Screenshots taken at the time of payout and bank statements are both acceptable as records. Organise these by tax year (1 January to 31 December). Players who maintain this discipline throughout the year avoid the scramble that typically precedes the 31 March filing deadline; good record-keeping at Step 1 is what makes every subsequent step tractable.
Step 2 — Work out gross and net winnings
The 5% WHT applies to net winnings, not gross winnings. Net winnings = amount won minus stake. A worked example: a ₦500 stake returns a ₦50,000 accumulator win; the net winning is ₦49,500; the 5% WHT is ₦2,475; the amount in the resident player’s hand is ₦47,025. The arithmetic is straightforward for a single event, but if you have multiple winning events across different operators across the year, use the withholding tax calculator at /legislation/tax-on-winnings/calculator/ rather than computing each manually. Aggregate net winnings across all operators for the relevant tax year before filing — LIRS and the NRS assess on the full-year figure.
Step 3 — Lagos-licensed payouts: the WHT is usually already deducted
From February 2026, the LSLGA requires Lagos-licensed operators to enforce automatic deduction of 5% WHT at the point of payout and remit it directly to LIRS. If you played on a Lagos-state-licensed platform and received a net payout after that date, the operator has in most cases already deducted and remitted the tax on your behalf — you do not owe the same amount again. Your obligation is to obtain and retain the deduction record from the operator. This may take the form of an operator statement showing the gross win, the WHT amount deducted, and the net amount paid. If the operator cannot provide documentation, contact its compliance department directly. This record is your proof for any future LIRS audit or source-of-funds review.
Step 4 — Offshore winnings: declare on your annual return (Form A)
Offshore operators licensed in Curaçao, Anjouan, Malta, or comparable jurisdictions have no legal mechanism to deduct Nigerian WHT at source. The obligation falls on the resident taxpayer to self-assess. Enter these winnings as income on the annual self-assessment return — historically designated Form A (the Taxpayer Self-Assessment Form) — filed with your state IRS. Under the worldwide-income principles carried into the 2025 regime, Nigerian tax-resident individuals must declare income from all sources, including offshore gambling wins. Confirm the current form designation on your state IRS portal at the time of filing, as form codes may be updated under the Nigeria Tax Administration Act 2025. If your offshore winnings were paid in USDT or another cryptocurrency, record the naira value at the exchange rate prevailing at the date of receipt — that figure is the income to declare. The AML and source-of-funds exposure for crypto-funded offshore accounts is material, given sustained CBN and EFCC monitoring of fintech payment rails feeding offshore platforms.
Step 5 — File with the right authority, by the deadline
For resident individuals, the filing destination is the state revenue service. Lagos residents use LIRS (lirs.gov.ng), which operates an e-Tax portal for online submission. Residents of other states file with their own state IRS. The federal NRS/FIRS — accessible via the TaxPro-Max platform — is the correct destination only for FCT-Abuja residents, non-residents with Nigerian-source income, and companies. The annual return must reach the relevant authority on or before 31 March each year for the preceding year’s income. Pay any balance due at the point of filing; penalties and interest accrue on late payment under the Nigeria Tax Administration Act 2025, so the deadline is material rather than advisory.
Step 6 — Keep your records for at least 5 years
Retain all bet slips, transaction statements, deduction receipts, and a copy of your filed annual return for at least five years, in line with SCUML and NFIU anti-money laundering record-keeping requirements. This is particularly consequential for offshore accounts: the CBN and EFCC actively monitor fintech payment channels linked to offshore betting, and the April 2024 action in which over 105 fintech accounts were frozen for links to offshore gambling illustrates the seriousness of undocumented inflows. A complete, well-organised source-of-funds trail is the most effective defence against compliance queries. Confirm the statutory tax-record retention period with a tax adviser — SCUML/NFIU requirements set a minimum of five years; the standard for tax purposes under the 2025 regime may be longer.
Special cases you may run into
Mixed onshore and offshore wins in the same year. If you won on both a Lagos-licensed platform and an offshore site in the same tax year, the two situations are handled separately. The Lagos-licensed payout is covered by the operator’s auto-deduction — retain the operator record; the offshore portion must be self-declared on Form A. Keep them as distinct line items on the return; do not net one against the other.
Casino, sportsbook, lottery, and poker winnings. The 5%/15% WHT framework applies to all these verticals on the same net-winnings basis under the Deduction at Source Regulations 2024. For vertical-specific details on rate application, see the sub-cluster pages covering casino winnings (/legislation/tax-on-winnings/casino/), lottery (/legislation/tax-on-winnings/lottery/), and poker (/legislation/tax-on-winnings/poker/).
Reality-show and competition prize money. Big Brother Naija prize money, televised game-show winnings, and similar competition payouts fall under the same “winnings” head under the Regulations. The 5%/15% framework applies on the same net-winnings basis.
Winnings paid in USDT or crypto from offshore operators. These remain taxable income under PITA’s worldwide-income principle. Record the NGN equivalent at the CBN rate or a recognised exchange rate at the date of receipt. The AML exposure is heightened for large cryptocurrency inflows from offshore gambling platforms; comprehensive documentation is essential. For the offshore-specific context, see /legislation/tax-on-winnings/offshore/.
Common mistakes to avoid
Assuming all winnings are tax-free. The Deduction at Source Regulations 2024 changed the position from 1 January 2025. Winnings from betting, gaming, lottery, and reality shows are within the WHT regime. Ignorance of the change is not a legal defence.
Double-counting tax already deducted at source. If a Lagos-licensed operator deducted 5% at payout post-February 2026, do not carry that same liability on your annual return. Obtain the operator’s deduction record and retain it as evidence.
Forgetting offshore wins. No operator deducts Nigerian WHT on offshore payouts, which creates the impression that no obligation exists. It does. The individual bears the self-assessment duty, and CBN/EFCC fintech monitoring creates real exposure for undeclared large inflows.
Discarding documentation before 5 years. Lost records leave you unable to substantiate declared figures or challenge a tax assessment. The cost of organised storage is trivial against the cost of an unresolved compliance review.
Filing with the wrong authority. The NRS/FIRS is not the correct filing point for the typical Lagos-resident individual. LIRS administers personal income tax for Lagos residents. Filing with the wrong authority causes delays and may attract penalties.
Declaring gross instead of net winnings. WHT is charged on net winnings — amount won minus stake. Declaring the gross amount overstates your liability and inflates your tax bill unnecessarily.
Frequently asked questions
Conclusion
For most resident players on Lagos-licensed platforms, the practical reality of how to declare gambling winnings tax in Nigeria is that the 5% WHT has already been deducted at source by the operator from February 2026 — the immediate obligation is to obtain and keep the deduction record. Offshore winnings are a separate matter: no deduction occurs at source, self-declaration on the annual Form A return is required, and filing goes to your state IRS (LIRS in Lagos) or the NRS for FCT residents and non-residents, with the 31 March deadline binding. Retain slips, statements, and filed returns for at least five years to satisfy SCUML and NFIU requirements and to protect against source-of-funds reviews.
Conclusively, compliance is straightforward once the procedure is clear — verify whether WHT was deducted at source, self-declare any offshore wins on Form A, file with the correct authority by 31 March, and keep the paperwork. The LIRS e-Tax portal and NRS/TaxPro-Max platform make online filing increasingly accessible for all categories of Nigerian taxpayer. When in doubt, consult a qualified tax professional or contact your state IRS directly.
18+. Play Responsibly. If gambling is affecting you or someone you know, contact Gamble Alert on +234 916 295 7989 or visit gamblealert.org. MANI helpline: 0809 111 6264.
This article is general information only and does not constitute personal tax advice. Confirm your specific position with a qualified tax professional or your state Internal Revenue Service.