Google, Netflix, Facebook, and other foreign companies paid ₦3.85 trillion in taxes to Nigeria’s Federal Government in the first nine months of 2024, a 68.12% increase from ₦2.29 trillion during the same period in 2023.
The National Bureau of Statistics revealed that the figure includes ₦2.57 trillion in Company Income Tax (CIT) and ₦1.28 trillion in Value Added Tax (VAT), both of which saw significant growth due to an improved tax collection drive.
CIT revenue rose 43.65% year-on-year, while VAT collections surged 157.03%. Quarterly data showed steady growth, with CIT earnings climbing from ₦598.13 billion in Q1 to ₦1.12 trillion in Q2 and ₦852.29 billion in Q3. VAT revenue also increased marginally, totaling ₦1.28 trillion for the period.
This growth reflects the government’s intensified efforts to tax foreign digital service providers like Netflix, Facebook, and Twitter, which operate in Nigeria without physical offices. Companies such as Google, LinkedIn, and Meta have complied with Nigeria’s digital tax requirements, but platforms like TikTok and X (formerly Twitter) are yet to meet regulatory obligations.
Tax revenue has become Nigeria’s primary income source, with ₦18.5 trillion remitted toward the government’s ₦19.4 trillion target for 2024. This revenue is crucial for distribution among federal, state, and local governments, underscoring the growing reliance on taxes to fund national development.
