Nigeria has collected more than ₦600 billion in value-added tax (VAT) from international digital companies including Facebook, Amazon, and Netflix, marking a historic step in taxing foreign firms operating in its digital economy.
The disclosure was made by Mathew Osanekwu, Special Adviser on Tax Policy to the Presidential Committee on Fiscal Policy and Tax Reforms, during a media workshop in Abuja. The collection follows amendments to the VAT Act requiring non-resident digital service providers to charge VAT on transactions with Nigerian users and remit directly to the Federal Inland Revenue Service (FIRS).
For years, digital platforms generated significant revenue from Nigerian consumers through subscriptions, advertising, and online purchases without being in the country’s tax net. Officials say this shift helps close critical revenue gaps in an economy where tax-to-GDP remains at just 10.8%, well below Africa’s 16% average.
Professor Taiwo Oyedele, chairman of the committee, stressed that the government is not introducing new taxes but instead restructuring existing ones to improve efficiency. “I challenge anyone to point to one newly added tax,” Oyedele said, adding that the emphasis is on consolidation, compliance, and fairness.
Broader reforms are expected from January 2026. Individuals earning less than ₦800,000 annually will be exempt from personal income tax, while small businesses with turnover below ₦100 million will enjoy zero corporate tax. Larger firms and high-income earners are expected to bear a greater share of the tax burden.
The ₦600 billion VAT haul is seen as part of a wider effort to diversify public finances, reduce reliance on oil, and align tax revenues with visible development projects. By formally bringing global digital platforms into its tax regime, Nigeria aims to modernize compliance and ensure multinational firms contribute to the local economy.
