The Nigerian government is rolling out a novel remote operator permit, enabling international operators with existing licenses to provide online gambling services within Nigeria without establishing a physical presence.
This permit will authorize operators to offer a range of gaming options, including casino games, bingo, slot machines, sports wagering, and poker, with a five-year validity period. Operators will be required to pay an initial fee of $100,000 to secure the license and an annual fee of $50,000 for the subsequent four years.
The Nigerian National Lottery Regulatory Commission will outline the terms and conditions that license holders must comply with. Newly licensed operators will be permitted to offer their services in Nigeria and advertise in the country’s print media or through affiliate programs.
The cornerstone of this system is the modernized tax collection mechanism, powered by Sentinal, a product developed by UK fintech firm E-Technologies Global Limited. This system will enable payment providers to deduct taxes at the point of transaction and promptly transfer the funds to the treasury.
The Head of the Nigerian Federal Tax Agency, Muhammad Nami, stated that the new system is crucial for enhancing tax income, a top priority for governments globally.
“The world faces a period of difficulty, and governments are obligated to increase their tax-to-GDP ratio to provide the necessary funds for local infrastructure and public services.
“Nigeria must embrace innovation and utilize technology to ensure that online transactions are taxed and accounted for.
“We are impressed with the Sentinal system, which will not only enable us to gather taxes at the source but also offer real-time tax reporting and monitoring tools. The system will be integrated with our TaxPro Max portal.”
The Director General of the Nigerian National Lottery Regulatory Commission, Lanre Gbajabiamila, said the nation would welcome any foreign operators who pass through its evaluation process.
“Online gambling is experiencing rapid growth in Nigeria, particularly on mobile devices, and the adoption of E-Technologies’ Sentinal national payment gateway is a significant step in allowing us to collect gambling taxes at the source,” he stated.
“We extend an invitation to all accountable foreign gambling operators to apply for a remote operator license, provided they meet all relevant standards, including comprehensive anti-money laundering screening and responsible gambling practices.”
Were delighted to be the first nation to implement the Sentinal system. We’re confident it will be a significant aid for Nigeria.
David Kix, the head of E-Technologies, stated that the agreement is a major stride for regulators in their fight against the illicit gambling industry.
“This is a monumental deal that will alter the landscape. It will unlock new legal markets for reputable gaming enterprises because the illicit market is escalating,” he remarked.
Subscribe to the iGaming newsletter.