The Federal Government has generated more than ₦600 billion in Value Added Tax (VAT) from global digital service providers such as Facebook, Amazon, and Netflix.
This was revealed by Mathew Osanekwu, Special Adviser on Tax Policy to the Chairman of the Presidential Committee on Tax Reforms, during a media workshop in Abuja on Wednesday, September 10, 2025.
According to Osanekwu, the revenue followed amendments to the VAT Act, which empowered the Federal Inland Revenue Service (FIRS) to tax non-resident companies offering services 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 also appointed as collection agents,” he explained, stressing that the reform ensures Nigeria earns from services consumed locally but delivered by foreign firms.
Chairman of the Tax Reforms Committee, Prof. Taiwo Oyedele, clarified that President Bola Tinubu’s fiscal reforms had not introduced new taxes, contrary to public perception.
“It’s not a new tax. Some said the tax is being proposed. The tax is not being proposed. Some believe this president has introduced tax after tax, and I challenge them to point to one newly introduced tax,” Oyedele said.
He noted that Tinubu suspended four levies introduced under the previous administration, including excise duties on plastics and vehicle imports, while also recalling that the much-debated Cybersecurity Levy predates the current government.
The ongoing tax reforms, set to take effect in January 2026, aim to consolidate multiple levies, eliminate duplication, and ensure transparent, project-linked spending. Under the new framework, Nigerians earning below ₦800,000 annually will be exempt from personal income tax, while small businesses with turnover under ₦100 million will enjoy a 0% corporate tax rate.