FG rakes in over N600bn VAT from Facebook, Netflix, Amazon,

The Federal Government has collected over N600 billion in Value Added Tax (VAT) from global digital service providers, including Facebook, Amazon, and Netflix.

This was disclosed by the Special Adviser on Tax Policy to the Chairman of the Presidential Committee on Tax Reforms, Mathew Osanekwu, during a media workshop in Abuja on Wednesday, September 10, 2025.

Osanekwu said the revenue followed amendments to the VAT Act empowering 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,” Osanekwu explained.

He stressed that the reform ensures Nigeria earns tax revenue from services consumed locally but delivered by foreign firms – in line with global best practices.

Also speaking at the event, the Chairman of the Tax Reforms Committee, Prof. Taiwo Oyedele, dismissed claims that President Bola Tinubu’s fiscal reforms introduced new taxes.

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Oyedele stated: “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 recalled that Tinubu, in July 2023, suspended four taxes introduced by the previous administration, including excise duties on plastics and vehicle imports.

“Many are not even aware because this president did not allow those taxes to take effect. They were suspended and later removed,” he noted, adding that even the controversial Cybersecurity Levy predates the current government.

The ongoing tax reforms, which will 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 N800,000 per year will be exempt from personal income tax, while small businesses with annual turnover below N100 million will enjoy a 0% corporate tax rate.

The Star