The Federal Government has generated more than ₦600 billion in Value Added Tax (VAT) from international digital service providers such as Facebook, Amazon, and Netflix.

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

Osanekwu explained that the revenue boost followed amendments to the VAT Act, which empowered the Federal Inland Revenue Service (FIRS) to tax non-resident companies offering services to Nigerian consumers.

“These are not Nigerian entities, but they are now paying VAT under Section 10 of the VAT Act. They are registered in Nigeria and appointed as collection agents,” he said, noting that the reform aligns with global best practices by ensuring taxes are paid on services consumed locally, even if delivered abroad.

Chairman of the Tax Reforms Committee, Prof. Taiwo Oyedele, also addressed misconceptions surrounding President Bola Tinubu’s fiscal policies, insisting that no new taxes have been introduced.

“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 said.

He recalled that Tinubu, in July 2023, suspended four taxes introduced by the previous administration, including excise duties on plastics and imported vehicles, stressing that even the contentious Cybersecurity Levy predates the current government.

Looking ahead, the new tax reform framework—set to take effect in January 2026—will consolidate multiple levies, eliminate duplication, and ensure transparent, project-linked spending.

Under the revised system, Nigerians earning below ₦800,000 annually will be exempt from personal income tax, while small businesses with turnover below ₦100 million will benefit from a 0% corporate tax rate.