Nigeria has disclosed that it has collected more than N600 billion in Value Added Tax (VAT) from global digital service providers, including Facebook, Amazon, and Netflix, following recent amendments to the VAT Act.
The revelation was made by Mr. Mathew Osanekwu, Special Adviser on Tax Policy to the Chairman of the Tax Reforms Committee, during a workshop for media practitioners in Abuja on Wednesday. He explained that the updated VAT framework empowered the Federal Inland Revenue Service (FIRS) to bring non-resident companies offering digital services in Nigeria into the tax net.
“These are not Nigerian entities, but they are now paying VAT under Section 10 of the VAT Act. They are registered in Nigeria and also appointed as agents of collection,” Osanekwu said, noting that the move places Nigeria in line with global best practices.
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He added that the policy ensures Nigeria benefits from taxes on services that are consumed locally but delivered by international companies, closing a major revenue gap in the digital economy.
The Federal Government also used the occasion to clarify that President Bola Tinubu’s ongoing fiscal and tax reforms have not introduced new taxes, contrary to speculation. Instead, the reforms are focused on expanding the existing tax base, improving compliance, and ensuring fairness in the system.
Analysts say the collection of VAT from global digital giants marks a significant milestone in Nigeria’s efforts to boost revenue generation and adapt to the realities of a fast-growing digital economy.
