A tax on virality? 🩷📈👍🏽
#196: Does taxing creativity contribute positively to the digital economy?
Hello venturer,
How is your side of the globe?
Quote of the Week: " Sticks and stones may break my bones but, inflation and currency devaluation will inflict economic pain." I'm paraphrasing, of course.
The global economy is experiencing a mixed bag of growth trajectories. While some regions are witnessing robust expansion, others are grappling with sluggishness.
In Nigeria, the annual inflation rate has soared to its highest level in nearly 28 years, reaching 29.9% in January 2024, while the currency exchange rate has seen a significant depreciation of 69% in February 2024.
Nigeria has an unemployment problem. The creative sector has reduced unemployment. The sector currently employs an estimated 4.2 million Nigerians, making it the second-largest employer in the country.
Despite the challenges faced by Nigerian citizens, the Corporate Affairs Commission (CAC) and the Federal Inland Revenue Service (FIRS) have expressed their plans to register and oversee the activities of content creators under the Company and Allied Matters Act (CAMA) 2020. In essence, they aim to initiate taxation for content creators.
This week, we discuss and tackle the question: Can the government tax content creators in Nigeria?
Boluwatife Areola
Content Developer, Ventures Africa.
What’s new?
Can the government tax content creators in Nigeria?
According to the International Finance Corporation, Nigeria’s internet economy is projected to reach $50 billion by 2025, accounting for 14% of the country’s GDP. Yet, with millions of Nigerians relying on online content for entertainment, information, and even income, the question of taxation becomes more than just numbers. Can the Nigerian system adapt to capture this new economic reality? Read more.
What can African leaders learn from Javier Milei?
When Javier Milei resumed office as Argentina’s new president in December, it marked a historic first. Never before had the country elected a doctrinaire libertarian to lead it. But it wasn’t surprising because Argentina’s economy needed urgent rescuing. Read more.
Historic tensions propel the recent DR Congo-Rwanda crisis.
The United Nations (UN) has issued a warning about the escalating humanitarian crisis in the eastern region of the Democratic Republic of Congo (DRC), particularly highlighting the alarming increase in violence against women. Read more.
Nigeria's self-employment trap
In a survey of companies in Nigeria, 81% said they had difficulty finding workers with the relevant skills. Self-employment makes this problem harder to solve because Nigeria now has millions of youths who have never experienced work under a corporate structure. Read more.
Podcast: Getting Funding in 2024
While Africa has attracted numerous investors over the years, enthusiasm seems to be dwindling. In 2023, African startup funding had a significant 39% year-on-year decline. The podcast was adapted from our LinkedIn Audio Event, held on Thursday, 1st of February, 2024, where we discussed "Getting Funding in 2024". Zainab Amoo, our Social Media Executive held an interesting discourse with guest speakers Eunice Ajim, Founding Partner of Ajim Capital and Uwem Uwemakpan, the Head of Investments at Launch Africa VC. Listen here.
IMF-Ivory Coast $1.3 billion facility and drone strike in DR Congo airport
Here are three big stories from Africa’s business and policy landscape you (probably) didn’t miss but should keep in mind this week. Read more.
Soft power - To attract, persuade, influence, and shape preferences through culture. Nigeria has effectively done this through entertainment. Our music, films, and content transcend borders, commanding global attention. As master storytellers, we leverage new technologies to amplify our cultural influence. Read our latest magazine issue to learn more.
Our Weekly Collectibles
Each week, investor and startup coach, Uwem Uwemakpan interviews African thought leaders who are shaking things up in their industry. Grab a sit at The Grinders Table.
Do you have to start a TikTok to be an artist? Learn why Everybody has to self-promote now. Yet, nobody wants to.
On the 4th of March, New York Times publisher A. G. Sulzberger will deliver the 2024 Reuters Memorial Lecture. But first, find out why he thinks “Our industry needs to think bigger”
Are you feeling the pinch of the economy? Find out How to make some extra money from your junk drawer.
#VANUGGET
