Suppose you’re an online seller in Onitsha, a freelancer in Uyo, or a remote worker managing clients from Abakaliki or in any region in the country, you need to pay attention to something: new digital economy regulations are here, and they’re changing the way online business operates in Nigeria.
In the last few months, several government bodies — including the Federal Inland Revenue Service (FIRS), Nigerian Communications Commission (NCC), and the Ministry of Communications, Innovation and Digital Economy — have rolled out or proposed new policies targeting the digital economy. While the goal is to increase oversight, improve revenue, and formalise digital transactions, these policies will have real-life effects, especially for small digital entrepreneurs and tech-enabled hustlers in Nigeria’s underserved regions.
So, what do these changes mean — practically — for everyday people in the South-East and South-South running their hustle online? Let’s unpack it.
The Policies in Question: What’s Changing
FIRS Digital Tax Filing & Withholding Rules
Digital sellers (including those using Instagram, WhatsApp, Selar, Paystack Storefront, etc.) may be subject to Value Added Tax (VAT) and other tax compliance filings.
Freelancers and remote workers earning from foreign companies are now under greater scrutiny for Personal Income Tax and Withholding Tax obligations.
NITDA’s Draft Code of Practice for Digital Platforms
Platforms like Facebook, TikTok, WhatsApp, and YouTube will be required to register with Nigerian authorities and respond to content regulation demands.
This includes policies that could affect influencer marketing, ad monetisation, and online commerce visibility.
CAC Mandatory Business Registration Campaign
The Corporate Affairs Commission (CAC) now strongly encourages (and in some cases, mandates) online vendors and digital entrepreneurs to register their businesses.
E-commerce sellers and digital creators are being pushed toward formalisation to qualify for public programs, grants, and certain banking services.
Remote Work & Cross-Border Earning Taxation
The FIRS has stated intentions to begin taxing Nigerian residents earning from foreign employers, especially freelancers and remote workers who get paid via Payoneer, Wise, or crypto.
What This Means for Online Sellers in the Southeast & South-South
1. More Paperwork — But Also More Legitimacy
In cities like Aba, Enugu, Uyo, and Calabar, thousands of women and youth run micro-businesses via Instagram, Facebook Marketplace, WhatsApp Business, and storefronts like Selar or Flutterwave.
These new policies mean you’ll need to:
Register your business with CAC (starting from N10,000 for a BN)
File basic tax returns (even if it’s just to show you earned little or nothing)
Keep receipts and transaction records if you’re accepting transfers or online payments
While this may feel like a hassle, it also opens the door to:
Accessing loans and grants (government or private sector)
Applying for export licenses (if you’re selling fashion, crafts, or food internationally)
Being listed on government-supported vendor platforms
“When I finally registered my food business and opened a corporate account, I got approached by a local NGO to cater for their events,” says Chisom N., a caterer in Awka. “They said they couldn’t pay to a personal account. That’s when I knew structure matters.”
2. Cross-Border Freelancers Need to Track Income
If you’re writing code from Umuahia for a startup in Berlin, or designing logos from Yenagoa for clients in Canada, it’s time to start tracking your income — because the government is watching.
Under the Finance Act, freelancers are now expected to:
Report foreign earnings in their annual tax filings
Possibly pay Withholding Tax (WHT) if their income is paid through a Nigerian company
Keep digital invoices and email confirmations for proof of services
Yes, it feels a bit scary. But the alternative is being flagged for tax evasion, which can lead to freezing of bank accounts or loss of future business opportunities.
“My first instinct was to panic,” says Ekemini A., a freelance writer in Uyo. “But I realized keeping proper records and getting a good accountant helped me avoid issues and even get some legit jobs that needed documentation.”
The Good News: Digital Policies Could Bring Opportunity
While many of these policies seem heavy-handed at first glance, there’s another side: regulation can create stability, and stability attracts investment.
✅ Funding & Support Tied to Compliance
Many of the grants and support programs coming through NITDA, LSETF, Tony Elumelu Foundation, and private VC firms now require CAC registration, a tax ID, or even basic bookkeeping.
By stepping into formalisation, more businesses in Owerri, Port Harcourt, or Abakaliki can:
Apply for accelerator programs
Join international trade platforms (like Etsy, Jumia Global, etc.)
Partner with schools, hospitals, and corporate clients
“We need women in Akwa Ibom or Ebonyi to stop seeing tax as punishment,” says Ngozi Okafor, a tax consultant helping market women digitize their shops. “Once you’re visible, people take you seriously.”
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Potential Pitfalls to Watch For
Of course, it’s not all rosy. Here are some practical issues to watch out for:
❗ High Registration & Tax Compliance Costs
CAC and FIRS processes can still feel bureaucratic. Many small business owners will need guidance or intermediaries to avoid being overcharged by “agents.”
❗ Poor Awareness & Communication
People in regions like Cross River or Ebonyi may not hear about these changes until it’s too late. Government must do more grassroots awareness via radio, community groups, and local influencers.
❗ Risk of Overregulation
If digital creators, mini e-commerce sellers, and freelancers are over-regulated too early or too harshly, informality may spike again as people retreat into a cash-based hustle.
What You Can Do as an Online Business Owner
Register Your Business (Even as a Sole Proprietor) Use pre.cac.gov.ng to begin the process or ask for assistance through NAFDAC, NYSC SAED centres, or local trade associations.
Open a Business Bank Account Even if you sell from your kitchen, having a business account builds credibility and makes record-keeping easier.
Track Your Income and Expenses Digitally Use free tools like Wave Accounting, Notion, or Google Sheets to monitor what’s coming in and going out.
Understand Your Tax Obligations Don’t wait till a letter comes from FIRS. Visit your local tax office, ask questions, and make basic filings.
Join Online Business Communities WhatsApp or Telegram groups for digital sellers and freelancers can keep you updated on policy changes and free support.
Not Just Watching, But Adapting
The Nigerian digital economy is no longer the wild, unregulated frontier it once was. From Aba tailors using Instagram to Bayelsa creatives making TikTok content, digital hustlers must now learn the rules of the game — not just to survive, but to scale.
For those in the South-East and South-South, this is a call to action: to organise, formalise, and claim your space in the future of work. The internet gave you the tools. These policies, for better or worse, will shape how you use them.
So don’t just hustle. Hustle smart. And most importantly, hustle legally.
