Tech Giants Pay N2.55trn in Taxes to FG in H1 2024

Google, Microsoft, TikTok, and other tech companies have paid a whopping N2.55 trillion in taxes to the Federal Government of Nigeria in the first half of 2024.

The National Information Technology Development Agency (NITDA) has announced that foreign digital companies, including Google, Microsoft, TikTok, and others, paid a staggering N2.55 trillion in taxes during the first half of 2024. This revelation was made public in a statement by NITDA's Director of Corporate Communications and Media Relations, Hadiza Umar, on Tuesday, December 3.

The tax payments were confirmed by data from the Federal Inland Revenue Service (FIRS) and the National Bureau of Statistics (NBS). NITDA took the opportunity to commend companies like Google, Microsoft, X, and TikTok for adhering to the Code of Practice for Interactive Computer Service Platforms and Internet Intermediaries. This code promotes online safety and responsible content management.

The Code, developed in partnership with the Nigerian Communications Commission (NCC) and the National Broadcasting Commission (NBC), offers clear guidelines for boosting online safety and tackling harmful content. This collaborative effort aims to create a safer online environment for Nigerians.

The implementation of this regulatory framework has had a significant impact on government revenue. According to NITDA, tax contributions from digital firms have increased substantially, providing a much-needed boost to the government's coffers. This development highlights the importance of effective regulation in the digital space.

“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) contributed operating in Nigeria, over N2.55 trillion (approximately $1.5 billion) in taxes in the first half of 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.