The Nigerian government has collected over N600 billion in Value Added Tax (VAT) from global digital giants like Facebook, Amazon, and Netflix.

According to Mr. Mathew Osanekwu, Special Adviser on Tax Policy to the Chairman of the Presidential Committee on Tax Reforms, the collections resulted from amendments to the VAT Act, empowering the Federal Inland Revenue Service (FIRS) to tax non-resident companies offering services in Nigeria.

Foreign digital companies are now registered in Nigeria and act as VAT collection agents.

The reforms aim to simplify the tax system, protect low-income earners, and ensure fairness, effective January 2026.

Individuals earning below N800,000 annually are exempt from personal income tax, while small businesses with turnover under N100 million face a 0% corporate tax rate.

Prof. Taiwo Oyedele, Chairman of the Tax Reforms Committee, emphasized that the reforms did not introduce new taxes, rather consolidated multiple levies and eliminated duplication.

He highlighted Nigeria’s dire economic state in May 2023, with depleted foreign reserves and subsidy-induced debt, arguing that the reforms were necessary for economic stability.

“Multiple taxes will be consolidated to eliminate duplication.

“Collections will be tied to transparent, project-driven spending.

“The reforms target higher-income earners fairly while reducing the burden on the middle class,” he stressed.