The Nigerian government is implementing a novel Remote Operator Permit for offshore licensed operators, enabling companies to provide online gambling services within Nigeria without physical presence.
Businesses already holding licenses in other regions and seeking to cater to Nigerian players are eligible for this Remote Operator Permit.
The permit will authorize operators to offer a range of gaming options, including casino games, bingo, slots, sports betting, and poker.
The permit will have a five-year validity period. Operators will be required to pay an initial fee of $100,000 to secure the permit and subsequent annual fees of $50,000 for the following four years.
The National Lottery Regulatory Commission of Nigeria will establish the rules and regulations that licensees must adhere to.
Newly licensed operators will be permitted to provide their services in Nigeria and advertise within the country through print media or affiliate programs.
A key component of this new system will be a modernized tax collection mechanism, powered by the Sentinal product developed by UK-based fintech firm E-Technologies Global Limited. This will enable payment providers to deduct taxes at the point of transaction and promptly transfer funds to the treasury.
The head of the Nigerian Federal Inland Revenue Service (FIRS), Muhammad Nami, declared that the new system is essential for boosting tax income, a critical factor in today’s global landscape where it’s a top priority for governments.
“The world is facing a challenging period, and governments have a duty to increase tax revenue as a proportion of GDP to ensure they have the necessary funds for local infrastructure and public services,” he stated.
“Nigeria must embrace innovation and leverage technology to guarantee that online transactions are taxed and accounted for.”
“We are impressed with the Sentinal system, which will not only enable us to tax at the source but also provide us with real-time tax reporting and monitoring tools. The system will be integrated with our own TaxPro Max platform.”
Lanre Gbajabiamila, the Director General of the National Lottery Regulatory Commission of Nigeria, expressed that the country will welcome any offshore operators that successfully complete its evaluation process.
“Online gambling in Nigeria, particularly on mobile devices, continues to expand rapidly, and the adoption of E-Technologies’ Sentinal National Payment Gateway represents a significant step in allowing us to collect gambling taxes at the source,” he said.
“We extend a warm welcome to all responsible offshore gambling operators to apply for remote operator licenses, provided they meet all relevant standards, including comprehensive anti-money laundering screening and responsible gambling practices.”
E-Technologies’ Chief Executive Officer, David Keeks, expressed his pride in Nigeria’s pioneering adoption of the Sentinal system. He believes this initiative will yield substantial national advantages for the country.
Keeks highlighted the significance of this agreement for regulators, enabling them to expand their reach and effectively suppress illicit activities.
He emphasized that this groundbreaking agreement signifies the dawn of a new era, paving the way for the emergence of regulated markets for reputable gaming operators. As black market operations pose an escalating threat, this development is crucial.
Sign up for the iGaming newsletter.