By Samuel Adeola
The Federal Government has disclosed that over ₦600 billion in Value Added Tax (VAT), has been collected from international digital service providers such as Facebook, Amazon, and Netflix.
The collections follow amendments to the VAT Act empowering the Federal Inland Revenue Service (FIRS), to tax non-resident companies offering services in Nigeria.
Special Adviser on Tax Policy, Mr. Mathew Osanekwu, confirmed the development, noting that the firms are now registered in Nigeria and serve as agents of collection under Section 10 of the VAT Act.
Meanwhile, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Prof. Taiwo Oyedele, clarified that the Tinubu administration has not introduced new taxes.
He explained that levies recently in public debate, such as the cybersecurity levy and the five per cent fuel surcharge, were already provided for in existing laws.
Oyedele further announced that tax reforms set to take effect in January 2026 will exempt individuals earning less than ₦800,000 annually from personal income tax. Small businesses with turnover below ₦100 million will also benefit from a zero per cent corporate tax rate.
Describing Nigeria’s economy in May 2023 as “on the verge of collapse,” Oyedele said the reforms were crucial to prevent a deeper crisis.
“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?” he stated.
