BBNaija Winner Imisi Loses 25% of ₦150m Prize to New Tax Law | Mixed Reactions Trail Deduction

The glitz of winning Big Brother Naija Season 10 came with a jaw-dropping announcement: a prize pot originally pegged at ₦150 million, before deductions, with Imisi running off with the grand prize. But beyond the applause and social media celebrations, a new tax landscape in Nigeria has raised questions: Will Imisi or winners like her get to keep all the prize money? Or will the government take a big bite?

Some commentators have suggested that under Nigeria’s updated tax regime, this kind of prize could be taxed at 25%. That has sparked debate — is that correct? Is it fair? And what does the law actually demand? Let’s unpack.

Here are the relevant rules and changes in Nigerian tax law as they currently stand:

1. Withholding tax regulations (2024)
   • Effective from 1 October 2024, Nigeria introduced deduction-at-source rules (Withholding Tax, or WHT) for winnings from lottery, gaming, reality shows, etc.
   • The rate is 5% WHT for residents, and 15% WHT for non-residents. This means that when someone resident in Nigeria wins a reality show, a 5% tax may be deducted at source from their winnings.
2. Exemptions
   • There is a defined exemption in the regulations for reality show or game-of-chance winnings that are designed exclusively to promote entrepreneurship, academia, technological or scientific innovation. If a show falls under this exemption, then the winnings are exempt from WHT.
   • It is, however, not clear that BBNaija qualifies for this exemption under those criteria. The law’s language is specific, and many believe BBNaija does not fall under “exclusively” promoting those fields.
3. Personal Income Tax Act (PITA) and State & Federal Taxes
   • Beyond withholding tax, income or gains might be subject to personal income tax (PIT), state taxes, or other assessments depending on the structure of the income and whether it’s classified as taxable. In past BBNaija cases (e.g. winners such as Ilebaye) there have been discussions about PIT, especially from state governments, demanding tax from large cash prizes.
   • The new Nigeria Tax Act (NTA), signed into law in 2025, introduces progressive tax rates (0% to 25%) for individuals based on income brackets. Very high-income persons pay more.

So, would Imisi face a 25% tax on ₦150 million?

Based on existing regulation and law, no — it is unlikely that all ₦150 million would be reduced by 25%, for several reasons. Here’s how the mechanics work, and where misunderstandings or exaggerations might come in.

So, in a realistic scenario, assuming:

• Imisi is a Nigerian resident,
• there are no special exemptions applying (i.e., the show is not fully in the entrepreneurship/academia/tech/innovation exemption category),
• the prize she receives is the ₦80 million (post internal deductions),

then she might pay a 5% WHT on that amount, which would be ₦4 million withholding. Then possibly income tax or other state taxes depending on how her total income for the year (including prize) pushes her into higher brackets — which could bring an overall taxation burden, for those portions, potentially approaching but not necessarily matching “25% of the full prize”.

Why the “25% tax bite” talk?

The idea that Imisi would face 25% probably comes from:

• Misunderstanding or combining withholding tax (5%) + personal income tax on high incomes (which can go up to 25%) if her total taxable income for the year is very high.
• Taking the full ₦150 million prize (before deductions) and assuming no internal deductions, no exemptions, and that all income is taxed at the top bracket.
• Public apprehension: many view big cash prizes as windfalls and expect them to be taxed heavily; people hear “new tax law, higher rates” and assume the worst.

Here are some of the reactions and arguments swirling online and in public:

Against the idea of high tax:

• “You worked for this; letting government take a big chunk feels like a punishment.” Many believe that winners deserve to enjoy their full prize, especially after months of exposure, public voting, etc.
• Concern about double taxation or multiplicity (state + federal) — fears that winners will be taxed more than once or under multiple overlapping rules.
• Worry that ambiguity in the law allows tax authorities to interpret prize money aggressively, leading to arbitrary demands.

In favour / supporting tax:

• The argument that such taxes promote fairness, ensure high-earners contribute to public finances, especially in times when Nigeria needs revenue.
• That people participating (and winning) large sums in reality shows are effectively businesspersons or entertainers, so their earnings should be taxed appropriately.
• The belief that withholding tax + income tax already set rules, so it is not “extra,” just enforcement of existing obligations.

Calls for reform or clarity:

• Many want clearer guidelines: what qualifies for exemptions, how prize money is defined (gross vs net), whether internal deductions count before taxes, etc.
• Legal voices ask for transparency from show organisers: to specify tax obligations in winner contracts, and to ensure they make appropriate deductions at source.
• Suggestions for public policy balancing: lower taxes for prize money so that winners can enjoy the fruit of victory, but ensure sufficient revenue via modest tax.

To prevent confusion and ensure fairness, the following are important:

1. Show Organisers’ Transparency
   Organisers like the producers of BBNaija should clearly communicate in contracts whether they will deduct withholding tax at source, what gross prize is vs what the winner gets, and whether there are other deductions (tasks, immunity twists etc.).
2. Tax Authority Clarity
   Federal and State tax authorities should publish guidelines specific to big reality show prizes: how prize money fits into PIT, whatable brackets, what deductions or reliefs apply.
3. Legal Definition of “Exempted Shows”
   If shows can claim an exemption (for shows “designed exclusively to promote entrepreneurship etc.”), there must be clear criteria and a process by which shows can apply for that status. Without clarity, people may believe incorrectly that a show qualifies or not.
4. A Reasonable Tax Regime
   The public sentiment suggests strong resistance to very high effective tax on an already taxed or deducted prize. A regime that is seen as fair — e.g. modest WHT, with progressive PIT only above very high thresholds, reliefs, etc. — would help reduce backlash.

Conclusion

While the headline “25% tax on ₦150 million prize” makes for dramatic conversation, the existing Nigerian tax laws suggest that the reality is more nuanced. Under the Withholding Tax Regulations 2024, a resident winner would more realistically face a 5% withholding tax on winnings, provided no special exemptions apply. Higher tax rates could come into play depending on total income for the year and other tax obligations, but it’s unlikely that all of the prize money would be taxed at a flat 25%.

For Imisi and future winners, enjoying the win will depend not only on crossing the finish line in the reality show, but also navigating contracts, deductions, and legal tax frameworks. Celebrations may come with a sting, but knowing what the law actually mandates helps separate fact from fear.