The founder of Nigerian e-commerce platform Selar has accused the Lagos State Internal Revenue Service (LIRS) of wrongly demanding backdated creator royalty taxes, warning that it could hurt Nigeria’s growing creator economy.
Selar founder, Douglas Kendyson, in an appeal to Lagos State Governor Babajide Sanwo-Olu and Minister of Arts, Culture and Creative Economy Hannatu Musa Musawa, said the company was being pressured to pay a 5% royalty fee on all creator sales despite operating as a software platform rather than a royalty-based business.
According to Kendyson, Selar provides e-commerce tools that enable more than 400,000 creators across 13 African countries to sell digital products, earning a commission of about 4% per transaction, much of which is paid to payment service providers.
He argued that the business model of the company is similar to global platforms such as Shopify and Teachable, saying there is no basis for classifying its earnings as royalties.
Kendyson said Selar had consistently met its tax obligations, paying taxes amounting to nearly nine figures in 2025 alone, and urged authorities to verify the compliance records of the company.
He warned that complying with the tax demand would force Selar to increase its charges to creators, adding that no major creator platform globally charges fees as high as 5%.
The founder also questioned how the company could absorb a backdated 5% levy when its net commission after payment gateway charges is between 1% and 3%.
Kendyson said the dispute was diverting resources that should be invested in expanding the business and supporting Nigeria’s digital economy.
He argued that Selar’s contributions to entrepreneurship and digital education, including its Smart Hustle anti-fraud initiative, should qualify the company for incentives rather than additional tax burdens.
The founder called on the government to support young entrepreneurs and the creator economy, stressing that policies perceived as unfavourable to startups could discourage innovation and investment.
