Abstract
The world economy has undergone drastic changes, majorly due to the rapid growth of digitalization and the covid-19 pandemic leading to an increased demand for online services .The global market is currently experiencing a paradigm shift from the traditional economy model to a digital economy model with investors capitalizing on this movement by investing heavily on digital services such as cryptocurrency, social media platforms, online shopping , online gaming etc.
Nigeria is no stranger to the movement with the National Bureau of Statistics reporting that the ICT sector contributed 17.83 per cent to Nigeria’s GDP in the second quarter of 2020. Moreover, due to fluctuating oil prices and the covid-19 pandemic which has increased the dependency on digital services, given that physical transactions has become limited due to the need to social distance. Therefore, a need arises to make stringent polices to better tax the digital economy.