FG nets ₦600bn in taxes from facebook, Netflix, others
The Federal Government has announced a major success in its tax collection efforts, having gathered over ₦600 billion in Value Added Tax (VAT) from international digital service providers, including Facebook, Amazon, and Netflix.
The achievement was confirmed by Mathew Osanekwu, Special Adviser on Tax Policy to the Chairman of the Presidential Committee on Tax Reforms. During a workshop in Abuja on Wednesday, he explained that amendments to the VAT Act now require non-resident companies to pay VAT on services rendered in Nigeria.
“These are not Nigerian entities, but they are now paying VAT under Section 10 of the VAT Act. They are registered in Nigeria and appointed as agents of collection,” Osanekwu said, adding that this aligns Nigeria with global tax standards and ensures the country benefits from services consumed locally.
Meanwhile, Professor Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, debunked rumors that the current administration has introduced new taxes. He stated that the ongoing reforms are focused on equity, fairness, and consolidation, not on creating new levies.
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“It’s not a new tax. Some believe this President has introduced tax after tax, and I challenge them to point to one newly introduced tax,” Oyedele stated. He pointed out that President Tinubu had even suspended taxes imposed by the previous administration shortly after taking office.
Oyedele also clarified that the controversial Cybersecurity Levy is an existing law, not a new creation of the Tinubu government.
The new tax framework, expected to be implemented in January 2026, aims to overhaul Nigeria’s tax system, increase revenue, and improve compliance. Oyedele noted that Nigeria’s current tax-to-GDP ratio is 10.8%, well below the African average of 16% and the global benchmark of 30%.
He explained that the reforms are designed to eliminate multiple taxes, protect low- and middle-income earners, and “fairly tax higher-income earners.” Under the new rules, Nigerians earning less than ₦800,000 annually will be exempt from personal income tax, and small businesses with earnings below ₦100 million per year will not pay corporate tax.
“This reform is the most progressive Nigeria has ever seen. It eliminates taxes on the poor, reduces the burden on the middle class, and fairly taxes higher-income earners,” Oyedele said.
He described the economy President Tinubu inherited as being “on the verge of collapse,” with “fiscal system running on fumes.” Oyedele concluded by posing a rhetorical question: “People may ask whether life is better now than it was two years ago. The right question is: would life have been better today if those reforms hadn’t happened?”
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