PELLER AND THE ₦36 MILLION TAX CONTROVERSY: WHAT IT MEANS FOR CELEBRITY WEALTH IN NIGERIA

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By Jesse Jackson 


The recent tax demand of ₦36 million from popular TikToker, Habeeb "Peller" Hamzat, by the Lagos State Internal Revenue Service (LIRS) has begun a nationwide conversation about celebrity wealth and tax compliance in Nigeria. The controversy, which began after Peller's public discussion of his earnings, is a clear reminder that the era of conspicuous consumption without tax accountability may be coming to an end for the nation's digital stars.

This case proves that the government is now actively monitoring social media to assess the income of influencers and celebrities.

Under Nigerian law, all residents must pay tax on their income, regardless of whether it's earned locally or from platforms like TikTok.

This serves as a critical warning to all content creators. The era of living a luxurious life online while avoiding taxes is over.

Peller has the legal right to challenge the tax bill, but he must provide concrete financial evidence to prove his actual earnings.




THE BACKSTORY

During a livestream with singer Peruzzi, Peller, an online content creator, revealed that the LIRS had served him with a personal income tax assessment of ₦36 million. 

The amount was reportedly based on the taxman's assumption that Peller's visible lifestyle and public statements about his earnings were accurate. However, Peller rejected the demand, claiming his comments about his wealth were merely "for the camera" and that he has never received any form of government support.


This case interestingly highlights how tax authorities are now operating. Also, with the rise of social media, the lines between personal and public life have blurred. The Taxmen are now actively monitoring social media platforms to spot high-net-worth individuals, including influencers, who may not be in compliance with tax laws.


THE LEGAL FRAMEWORK: What The Law Says

For Peller and other Nigerian residents, the law is pretty clear: all income, regardless of its source, is taxable. The Personal Income Tax Act (PITA) establishes that an individual is considered a resident of Nigeria if they have stayed in the country for at least 183 days in a year. Then for a resident, all their global income, including that from international social media platforms like TikTok, is subject to Nigerian tax.


What this means is that Peller's argument that his income is from foreign sources may not hold up. The LIRS action of serving Peller, the ₦36 million tax, is in alignment with the residency-based taxation system. However, the law also provides a path for dispute resolution. Peller as a citizen and resident has the right to challenge the assessment by providing evidence of his actual earnings and any allowable deductions, as per the legal provisions.


A WAKE-UP CALL FOR THE DIGITAL ECONOMY

The Peller controversy is a microcosm of a broader national effort to widen the tax net. The State and federal governments have been under pressure to increase internally generated revenue (IGR) to fund crucial public services and infrastructure projects. The digital economy, with its immense and often untaxed wealth, has become a river to fish in.


The Lagos State Government, for instance, has announced plans to generate hundreds of billions of naira annually by taxing freelancers, remote workers, and digital influencers. This move is accompanied with the implementation of a "Resident Global Digital Citizen Tax Management System". Which will regulate and tax this rapidly growing sector. The Corporate Affairs Commission (CAC) has also urged content creators with large followings to register their businesses, reminding them that "ignorance of the law is not an excuse.”

This push for tax compliance has significant implications for celebrity wealth in Nigeria

These implications include:

• Increased Scrutiny: Celebrities and influencers can no longer rely on anonymity to evade taxes. Their public displays of wealth will be used as a basis for tax assessments.


• Need for Professional Advisory: The complexity of digital income, which often involves cross-border transactions and multiple platforms, necessitates professional tax advice. Celebrities will need to engage with accountants and lawyers to ensure compliance.


CONCLUSION

The Peller case is a very pivotal moment. Some see the LIRS's action as an overreach, others view it as a long-overdue step towards creating a fairer tax system where everyone, regardless of their celebrity status, contributes their due share. The outcome of this dispute will very well set a precedent and shape the future of how celebrity wealth is managed and taxed in Nigeria.

• The Price of Fame: The Peller controversy shows that public fame and wealth come with a corresponding civic responsibility. The government is sending a clear message that those who benefit from the Nigerian economy must contribute to it.




Comments

NARCICUSSing said…
Stellar take, etete!
August 18, 2025 at 4:21 AM
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