The Special Adviser on Tax Policy to the Chairman of the Tax Reforms Committee, Mr Mathew Osanekwu, has disclosed that Nigeria generated over N600 billion in Value Added Tax (VAT) from global digital service providers, including Facebook, Amazon, and Netflix based on the ongoing reforms of the fiscal system.
The Special Adviser, who made this disclosure during a workshop for journalists on Wednesday in Abuja, explained that amendments to the VAT Act had statutorily empowered the Federal Inland Revenue Service (FIRS) to bring non-resident companies providing services in Nigeria into the tax net with the attendant positive implications for the country in terms of sustainable revenue accruals to the Federation Account.
Osanekwu stated: “These are not Nigerian entities, but they are now paying VAT under Section 10 of the VAT Act. They are registered in Nigeria and are also appointed as agents of collection.”
According to him, the new provisions of the Act aligns with global best practices and ensures Nigeria benefits from taxes on services consumed locally but delivered by foreign companies.
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Speaking at the forum, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr. Taiwo Oyedele, explained that ongoing fiscal and tax reforms had not introduced any new taxes, contrary to widespread speculation, but were designed to ease the tax burden on low- and middle-income earners while ensuring equity and fairness.
According to him, many of the levies being debated in the public space, including the controversial five per cent fuel surcharge, are not new but provisions in long-standing laws predating the current administration.
Oyedele clarified: “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.”
He told participants at the workshop that in July 2023, barely two months after assuming office, President Tinubu signed four executive orders suspending taxes, including excise duties on plastic items and vehicle importation, among others, that had been hurriedly introduced during the final days of the
Oyedele explained that many Nigerians were not aware of the suspension of the taxes because the president did not allow those taxes to take effect but were suspended and eventually removed
This is even as he clarified that the much-debated Cybersecurity Levy was enacted years ago and that the present administration did not originate it.
The tax expert maintained that the reforms, especially the just enacted Acts, were aimed at avoiding multiple taxes, remove overlapping charges, and tie levies to transparent, project-linked spending.
Oyedele further assured the latest fiscal frameworks were progressive and designed to protect vulnerable groups while fairly taxing higher earners.
The Tax Reforms Committee chairman stressed: “This reform is the most progressive Nigeria has ever seen. It eliminates taxes on the poor, reduces the burden on the middle class, and targets higher-income earners fairly.”
The new tax legislations, which the administration of many would commence from January 2026, are part of efforts to overhaul Nigeria’s weak tax system, broaden the revenue base, and improve compliance.
Under the reforms, personal income tax thresholds have been adjusted to ensure that Nigerians earning less than N800,000 annually will pay no tax on that amount. Similarly, small businesses earnings under N100 million per year will enjoy a 0 per cent corporate tax rate.
Nigeria’s tax-to-GDP ratio currently stands at about 10.8 per cent, one of the lowest globally and far below the African average of 16 per cent and the global benchmark of 30 per cent.
