Foreign companies, including Google, Netflix, and Meta, contributed ₦2.57 trillion in taxes to Nigeria’s federal government in the first nine months of 2024, according to data from the National Bureau of Statistics (NBS).
This represents a 44% rise compared to the ₦1.79 trillion collected during the same period in 2023. The NBS report highlights quarterly fluctuations, with ₦598.1 billion collected in Q1, ₦1.12 trillion in Q2, and ₦852.3 billion in Q3. However, the third-quarter figures indicate a potential slowdown in economic activity.
Corporate Income Tax (CIT), which imposes a 30% levy on corporate profits, remains a key revenue source alongside the 7.5% Value Added Tax (VAT) on goods and services, as outlined by the Federal Inland Revenue Service (FIRS).
The report underscores the significant contributions of global digital giants like Google, Netflix, and Meta, operating in sectors such as social media, video streaming, and digital content, under Nigeria’s digital tax framework.
Despite their strong contributions, the economic environment has posed challenges. For instance, Netflix has reported reduced customer engagement due to inflation affecting consumer spending. A company insider revealed that Netflix remains committed to Nigerian storytelling but is becoming more selective with local content investments due to economic constraints.
VAT revenue also surged, climbing 157% year-on-year to ₦1.28 trillion from ₦498.3 billion in 2023. Together, VAT and CIT revenues totaled ₦3.85 trillion from foreign firms within the nine-month period, reflecting a 68.1% increase compared to ₦2.29 trillion in 2023.
