FG Nets ₦600bn VAT From Facebook, Amazon, Netflix, Others

The Federal Government has disclosed that it has collected over ₦600 billion in Value Added Tax (VAT) from global digital giants such as Facebook, Amazon, and Netflix.

Mr. Mathew Osanekwu, Special Adviser on Tax Policy to the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, revealed this in Abuja on Wednesday during a workshop for journalists. He explained that amendments to the VAT Act empowered the Federal Inland Revenue Service (FIRS) to tax non-resident digital companies providing services to Nigerians.

“These are not Nigerian entities, but under Section 10 of the VAT Act, they are now registered and pay VAT as collection agents,” Osanekwu said.

He stressed that the move aligns with global best practices, ensuring that Nigeria earns revenue from services consumed locally but delivered by foreign firms.

At the same event, Committee Chairman Professor Taiwo Oyedele clarified that contrary to public perception, President Bola Tinubu’s fiscal reforms have not introduced new taxes. Instead, he said the reforms are designed to simplify the tax system, reduce the burden on low- and middle-income earners, and ensure fairness.

“It’s not a new tax. Many of the levies people complain about, like the fuel surcharge or cybersecurity levy, were passed into law years ago. This administration did not introduce them,” Oyedele noted.

He reminded participants that Tinubu suspended several taxes in July 2023 — including excise duties on plastics and vehicle imports — which had been rushed in by the previous administration.

The reforms, due to take effect in January 2026, aim to consolidate multiple taxes, scrap overlapping charges, and link revenues directly to transparent project funding.

Key highlights include:

• Nigerians earning below ₦800,000 annually will be exempt from personal income tax.

• Small businesses making less than ₦100 million yearly will pay 0% corporate tax.

• Higher earners will bear a fairer share of the tax burden.

Oyedele admitted that Nigeria’s economy was “on the verge of collapse” in May 2023, citing depleted reserves, mounting subsidy debts, and oil pre-sales that left barely 200,000 barrels available for government use. He argued that scrapping subsidies and pushing reforms prevented a Sri Lanka-style fuel crisis.

“People ask if life is better now than two years ago. The right question is: would life have been better if these reforms hadn’t been implemented?” he asked.