Sawubona,
Victoria from Techpoint here,
Here’s what I’ve got for you today:
- Nigeria rakes in ₦600B VAT from Netflix, Facebook
- Web3 hype could cost you funding in Africa
- Kenyan artists cash out big from local streaming app
Nigeria rakes in ₦600B VAT from Netflix, Facebook
Nigeria just pulled in over ₦600 billion in VAT from global digital giants like Facebook, Amazon, and Netflix, a first-of-its-kind milestone in taxing foreign companies operating in the country’s cyberspace. The disclosure came from Mathew Osanekwu, Special Adviser on Tax Policy to the Presidential Committee on Fiscal Policy and Tax Reforms, at a media workshop in Abuja.
Until recently, these companies, though widely used by Nigerians for shopping, streaming, adverts, and more, had been outside the tax net. But amendments to the VAT Act now compel non-resident digital firms to collect VAT directly from Nigerian users and remit it to the FIRS. That means every subscription, ad payment, or online purchase is contributing to local revenue.
It’s a big deal in a country still battling low tax compliance. With tax-to-GDP at just 10.8% — far below Africa’s 16% average — the government says capturing digital services is key to closing gaps and reducing dependence on oil revenue.
But to clear the air, officials insist there are no new taxes under President Tinubu. Instead, the focus is on restructuring existing ones, consolidating levies, and ensuring compliance. “I challenge anyone to point to one newly added tax,” said Professor Taiwo Oyedele, who leads the committee.
Major reforms are expected to kick in by January 2026. Low- and middle-income earners will get relief, with those earning less than ₦800,000 a year exempt from personal income tax. Small businesses making under ₦100 million will also enjoy zero corporate tax, while bigger firms and wealthier individuals shoulder a fairer share.
The ₦600 billion haul is only part of the bigger plan, one that ties revenues to visible projects, simplifies compliance, and makes foreign firms pay their fair share. For Nigeria, it’s a historic move towards building a tax system fit for the digital age.
Web3 hype could cost you funding in Africa
Africa’s blockchain founders are facing a wake-up call: slapping “Web3” on their pitch deck might do more harm than good. At ETHSafari 2025 in Nairobi, investors made it clear: local backers aren’t exactly excited about the blockchain buzzword. For many, it screams risk.
On stage, Gideon Greaves of Lisk and Brenton Naicker of CV VC said African founders should stop trying to sell the tech and instead talk about the real problems they’re solving. “You’re not building a blockchain business. You’re building agritech, fintech, or creator tools, blockchain is just the plumbing behind it,” Naicker argued.
He pointed to startups like Jamit and Afrkabal, which quietly use blockchain to tackle issues in the creator economy and agriculture. The lesson? If you’re pitching to local investors, lead with the solution, not the stack. Otherwise, you’ll likely lose the room before the conversation even starts.
VCs, it turns out, face the same battle. Limited partners (LPs) backing their funds don’t want to hear the blockchain gospel either. They see it as a risky play and prefer assets they can cash out of quickly. Long-term bets tied up for a decade? Not their style.
Greaves said it bluntly: “Not everything needs to have a token.” What matters is whether your startup can grow at the same pace as its Web2 peers, and many blockchain-enabled businesses already do. The lines are blurring; investors just want to see traction, not tech jargon.
So, if you’re a founder in Africa’s blockchain scene, here’s the memo: sell the problem you’re solving, not the blockchain you’re using. For more context and insights from ETHSafari, read Bolu’s latest for Techpoint Africa.
Kenyan artists cash out big from local streaming app
Kenyan musicians are cashing in big on Mdundo, the homegrown streaming and download platform that’s quietly reshaping how artists get paid. Between January and July 2025, artists pocketed $500,000 (about KSh 64.6 million) from the platform, nearly half of Mdundo’s $1 million payout across Africa in that period.
Why does this matter? For years, Kenyan artists have complained about unfair cuts from global platforms like Spotify and YouTube. Spotify only launched locally in 2021, and while it offers reach, earnings often remain low due to how revenue is split. YouTube, on the other hand, is huge for visibility but pays only once artists hit certain thresholds, and even then, the revenue per stream is notoriously small. Mdundo is proving that local-first platforms can put real money in artists’ pockets.
The model is simple: the platform is free to users, making money from ads, premium subscriptions, and telco partnerships. At payout time, artists walk away with 50 percent of revenue based on downloads. That’s far more transparent than the complicated formulas used by global streaming services.
It’s also clear that Kenyan listeners are embracing their own. Hip-hop group Wakadinali, gospel star Stephen Kasolo, and gengetone act Iyanii are topping charts, showing off the genre diversity that’s driving downloads.
The bigger story here is that Mdundo is giving artists a reason to see streaming as more than exposure. It’s income. And in a country where piracy and underpayment have long plagued musicians, that shift is huge.
The challenge, though, is scale. Spotify and YouTube still dominate global discovery. But with Mdundo showing that fair pay is possible, the question is whether more local platforms across Africa will follow suit and whether fans will keep choosing homegrown apps over global giants.
In case you missed it
- Zoho Nigeria’s year-on-year growth slows to 74%
What I’m watching
- The male inequality problem is getting worse | Richard Reeves: Full Interview
- Ray Dalio: We’re Heading Into Very, Very Dark Times! America & The UK’s Decline Is Coming!
Opportunities
- Businessfront, the parent company of Techpoint Africa, is hiring a Sales Associate. Apply here.
- Businessfront, the parent company of Techpoint Africa, is looking for a Managing Editor (FMCG). Apply here.
- Flutterwave is hiring for several roles. Apply here.
- Paystack is recruiting a performance marketing specialist in Nigeria. Apply here.
- Kuda is hiring for several roles. Apply here.
- Kuda Technologies is hiring a Legal Counsel. Apply here.
- FairMoney is looking for a Head of Business Banking Product. Apply here.
- Moove is recruiting a Customer Success Executive. Apply here.
- Ecobank Nigeria is hiring a Chief Information security officer. Apply here.
- The Institute of African and Diaspora Studies at the University of Lagos is looking for a Junior Research Fellow. Apply here.
- MTN Nigeria is hiring an Operational Risk Specialist. Apply here.
- Co-Creation HUB (CcHUB) Nigeria is looking for a Head of Communications. Apply here.
- Group Vivendi Africa is hiring an IT Manager. Apply here.
- Sun King is hiring across different states in Nigeria. Apply here.
- Africa’s venture scene takes the spotlight at the Lagos Venture Finance Summit on September 5th, 2025. Hosted by Vencapital, the Summit gathers top LPs, GPs, policymakers and ecosystem leaders for high-level conversations, networking and dealmaking. A must-attend for those shaping Africa’s next wave of venture capital. Register here.
- Paystack is hiring for several roles in Nigeria and South Africa. Apply here.
- Paga is recruiting for several positions. Apply here.
- Moniepoint is hiring for several positions. Apply here.
- Are you building a startup can feel isolating, but with Equity Merchants CommunityConnect, you can network with fellow founders, experts, and investors, gaining valuable insights and exclusive resources to help you grow your business. Click here to join.
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Have a fun weekend!
Victoria Fakiya for Techpoint Africa
