The viral Nigerian TikToker known as Peller has found himself at the centre of controversy after the Lagos State Government reportedly slammed him with a ₦36 million tax bill, sparking debates across social media about whether online creators truly understand the nation’s tax obligations.
Peller, in a series of emotional outbursts online, claimed he was shocked by the bill, insisting that he does not run a company and therefore never imagined he could be liable to such heavy taxation. He further argued that he earns his money online through TikTok and not within Nigeria, hence believed taxation did not apply to him.
But tax experts and financial analysts say Peller’s claims highlight a common ignorance of Nigeria’s tax laws, especially among young content creators and freelancers who earn huge sums online.
According to breakdowns of Nigeria’s new progressive tax system—which will take full effect from 2026 but is already being enforced in Lagos—individuals earning above ₦800,000 per year are legally obligated to pay personal income tax (PIT). The higher the income bracket, the higher the tax percentage, ranging from 15% to 25%.
For the state to issue a ₦36m bill, analysts estimate that Peller must have earned over ₦152 million within the review period. This suggests that the government had already tracked his inflows and outflows through his Bank Verification Number (BVN) and National Identification Number (NIN) before arriving at the figure.
A Lagos-based tax consultant told reporters:
> “The government is not guessing. Every inflow into your account is visible to regulators. If someone is billed ₦36 million, it means a verified audit of their income has been carried out. Ignorance of the law is not an excuse.”
Currently, Nigeria operates a multi-tier tax structure where both federal and state governments share authority. But beginning January 2026, the country will officially adopt a progressive tax system. This means individuals earning below ₦800,000 annually will be exempt from tax, while those earning up to ₦49.2 million will pay between 15% and 23%. Earnings above that threshold will be taxed at 25%. For companies, those with less than ₦50 million turnover will be exempt, while companies earning above that figure will pay 25% corporate tax.
This means content creators, social media influencers, freelancers, and even small business owners who earn in millions will no longer be able to evade tax obligations.
Experts argue that Peller’s predicament could have been avoided if he had properly structured his brand as a limited liability company (Ltd) instead of operating solely as an individual. Under corporate taxation, businesses are allowed to deduct operational costs such as staff salaries, equipment purchases, rent, and marketing expenses before tax is calculated. This significantly reduces the taxable amount.
Had Peller registered something like “Peller Entertainment Ltd” and processed all revenues through a corporate account, his tax liability could have been slashed from ₦36m to as low as ₦5m–₦10m.
While Peller insists he cannot afford the ₦36m bill, financial experts advise him to hire a tax consultant immediately to negotiate with the Lagos State Internal Revenue Service (LIRS). Failure to do so could result in additional fines, account freezes, or even prosecution.
Tax analysts also warn that Peller’s case should serve as a wake-up call to thousands of Nigerian youths making money from TikTok, YouTube, Instagram, and other online platforms. “From 2026, there will be no hiding place. Whether you scatter your money across ten banks or collect it in cash, once it passes through your BVN or NIN, it is traceable,” another expert explained.
The ₦36m tax saga of TikToker Peller is more than a viral scandal—it is a warning shot to the digital generation. As Nigeria tightens its tax net, ignorance will no longer be an excuse, and restructuring one’s business is no longer optional but a survival strategy.
