Google, Netflix, Facebook, and other international companies operating in Nigeria paid N3.85tn in taxes to the Federal Government in the first nine months of 2024.

This marks a 68.12% increase compared to the N2.29tn collected during the same period in 2023.

The tax revenue, which includes Company Income Tax (CIT) and Value Added Tax (VAT), was disclosed by the National Bureau of Statistics (NBS) on Tuesday.

The report reveals that CIT and VAT collections rose significantly in 2024.

Between January and September, companies remitted N2.57tn in CIT, a 43.65% jump from the N1.789tn recorded in the corresponding period of 2023.

Meanwhile, VAT revenue surged by 157.03%, rising from N498.34bn in 2023 to N1.28tn in 2024.

On a quarterly basis, CIT earnings increased from N598.13bn in Q1 to N1.12tn in Q2, before dropping slightly to N852.29bn in Q3.

VAT collection also saw fluctuations, with N435.73bn in Q1, N395.74bn in Q2, and N448.85bn in Q3, reflecting a modest 3.01% growth.

Since 2020, Nigeria has ramped up efforts to tax foreign digital service providers that earn revenue in naira.

Companies offering digital video services, advertising, and downloads, such as Netflix, Facebook, and Twitter, are subject to these taxes, even without a physical presence in the country.

Other platforms like Alibaba and Amazon also contribute by processing user data, providing goods and services through digital platforms, or linking suppliers to customers in Nigeria.

The government expects tax revenues to grow further as more social platforms comply with these obligations.

The National Information Technology Development Agency (NITDA) recently noted that TikTok and X (formerly Twitter) have yet to meet Nigeria’s tax filing requirements.

However, Google, LinkedIn, and Meta have fulfilled their obligations under the “Code of Practice for Interactive Computer Service Platforms and Internet Intermediaries (CoP for ICSP/II).”

Earlier this year, the former Accountant-General of the Federation, Oluwatoyin Madein, emphasized the critical role of tax revenue as Nigeria’s primary income source.

She noted that the Federation Account Allocation Committee (FAAC) eagerly awaits the Federal Inland Revenue Service (FIRS) figures each month, as these funds are vital for federal, state, and local governments.

The FIRS, which had a 2024 tax revenue target of N19.4tn, has already remitted over N18.5tn, underscoring the government’s improved collection efforts and the growing contributions of foreign tech giants to Nigeria’s economy.