Foreign technology companies operating in Nigeria, including giants like Google, Netflix, and Facebook, contributed a significant N3.85 trillion in taxes to the Federal Government in the first nine months of 2024, according to data released by the National Bureau of Statistics. This represents a substantial 68.12 percent increase compared to the N2.29 trillion collected in the same period of 2023.
The figures, which include Company Income Tax (CIT) and Value Added Tax (VAT), highlight the growing importance of these tech giants in contributing to Nigeria’s revenue generation. CIT collections surged by 43.65 percent to N2.57 trillion, while VAT collections witnessed an impressive 157.03 percent increase to N1.28 trillion during the same period.
This significant tax revenue boost stems from the government’s efforts to collect taxes from foreign digital service providers operating in Nigeria. These companies, which offer services such as video streaming, social media platforms, and digital content downloads, are now required to contribute to the Nigerian economy through tax payments.
While companies like Google, LinkedIn, and Meta have met their tax compliance obligations, others, such as TikTok and X (formerly Twitter), are yet to comply with Nigeria’s regulatory framework.
The former Accountant-General of the Federation, Oluwatoyin Madein, emphasized the crucial role of tax revenue in supporting government operations. “Tax revenues today are the highest source of revenue accruing to the federation,” she stated. “Therefore, at the federation account allocation committee meetings, we eagerly await the numbers coming from the FIRS because the performance keeps on increasing and brings succour to all tiers of government.”
This significant increase in tax revenue from foreign tech companies underscores the government’s commitment to expanding its tax base and ensuring that all businesses operating within the Nigerian market contribute their fair share to the nation’s development.
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