Tech Giants Google, Facebook, Netflix Lead in Tax Contributions to Nigerian Government

Foreign companies operating in Nigeria, including tech giants Google, Facebook, and Netflix, have collectively paid ₦3.85 trillion in taxes to the Federal Government within the first nine months of 2024.

This figure represents a remarkable 68.12% increase from the ₦2.29 trillion collected during the same period in 2023, according to data released by the National Bureau of Statistics.

The tax revenue comprises ₦2.57 trillion from Company Income Tax (CIT) and ₦1.28 trillion from Value Added Tax (VAT).

The Federal Inland Revenue Service (FIRS) imposes a CIT rate of 30% on company profits and a VAT rate of 7.5% on goods and services.

This surge in tax collection is attributed to enhanced compliance efforts and strategic initiatives aimed at taxing foreign digital service providers.

A spokesperson for the FIRS noted, "The performance keeps on increasing and brings succour to all tiers of government." The agency has been tasked with a tax revenue target of ₦19.4 trillion for 2024, with over ₦18.5 trillion already remitted.