Nigeria has made significant progress in collecting Value Added Tax from international digital services such as Facebook and Amazon.
Value Added Tax Collection
According to Mathew Osanekwu, Special Adviser to the Chairman of the Presidential Committee on Fiscal Policy, Nigeria has collected over ₦600 billion from foreign digital services. This achievement marks a significant milestone in the country's efforts to tax foreign companies operating within its territory.
Clarifications on New Taxes
Professor Taiwo Oyedele stated that no new taxes have been introduced, and the ongoing reforms are focused on restructuring existing taxes and improving compliance. He mentioned that debated taxes, like the 5% fuel levy, were previously enacted.
Future Tax Reforms
Major tax reforms are expected to take effect in January 2026, aimed at overhauling Nigeria's tax system. The reforms intend to widen the tax base and enhance compliance while simplifying tax obligations for small businesses and providing relief for low- and middle-income taxpayers.
The ₦600 billion collected from foreign digital platforms lays the groundwork for establishing a more sustainable tax system and strengthening Nigeria’s economy.
