Foreign companies operating in Nigeria, including global giants like Google, Netflix, and Facebook, have contributed a total of N3.85 trillion in taxes to the Federal Government in the first nine months of 2024, according to a recent report from The PUNCH. This amount represents a significant 68.12% increase from the N2.29 trillion collected in the same period in 2023, highlighting a remarkable growth in Nigeria’s tax revenue.
The payments, which include both Company Income Tax (CIT) and Value Added Tax (VAT), reflect a strong surge in Nigeria’s tax collections, fueled by improved tax administration and compliance. According to data from the National Bureau of Statistics (NBS), CIT collections alone amounted to N2.57 trillion for the period from January to September 2024. This marked an impressive 43.65% increase compared to N1.79 trillion collected during the same period in 2023.
VAT collections also saw a substantial rise, reaching N1.28 trillion in 2024, a staggering 157.03% increase from the N498.34 billion collected in the first nine months of 2023. The surge in VAT is attributed to the expanded tax base and increased consumption driven by digital services, which have gained widespread acceptance across the country.
