TitTok, Google, Microsoft Contribute N2.55 Trillion in Tax to Nigeria’s Economy

Foreign digital companies, including major social media platforms, have made a significant contribution to Nigeria’s economy, generating over N2.55 trillion in tax revenue during the first half of 2024.

 

This revelation was made by the National Information Technology Development Agency (NITDA) in a recent report. The substantial tax contribution highlights the growing economic impact of the digital sector in Nigeria.

 

Accroding to the report, Google, Microsoft, and TikTok, among others, paid a total of N2.55 trillion in taxes in the first half of this year.

 

The Agency disclosed this in a statement issued on Tuesday by its Director of Corporate Communications & Media Relations, Mrs. Hadiza Umar, quoting data from the Federal Inland Revenue Service (FIRS) and the National Bureau of Statistics (NBS).

 

NITDA specifically, commended Google, Microsoft, X, and TikTok for their compliance with the Code of Practice for Interactive Computer Service Platforms/Internet Intermediaries.

 

The Code which was issued jointly by the Nigerian Communications Commission (NCC), National Broadcasting Commission (NBC), and NITDA outlines clear guidelines for promoting online safety and managing harmful content.

 

While highlighting the impacts of the regulatory framework, NITDA noted that this has also boosted the government’s revenue through the payment of taxes by digital companies.

 

“Data from the Federal Inland Revenue Service (FIRS) and the National Bureau of Statistics (NBS) reveal that foreign digital companies, including interactive computer service platforms and internet intermediaries (such as social media platforms) operating in Nigeria, contributed over N2.55 trillion (approximately $1.5 billion) in taxes in H1 2024.

 

“This significant increase in revenue underscores the role of robust regulatory frameworks in shaping compliance and driving revenue growth in the digital economy,” NITDA stated.