Nigeria TV Info 

FG Collects N600bn VAT from Facebook, Others

The Federal Government has announced that it successfully generated ₦600 billion in Value Added Tax (VAT) from foreign digital service providers, including Facebook, Netflix, Google, and other online platforms operating in Nigeria.

According to the Federal Inland Revenue Service (FIRS), the revenue was recorded following the implementation of the Significant Economic Presence (SEP) rules which mandate foreign companies offering digital services to Nigerian users to remit VAT directly to the government.

Officials disclosed that the collection reflects the growing digital economy in Nigeria and demonstrates government’s commitment to broadening the tax net beyond traditional industries.

The FIRS Chairman noted that the ₦600bn revenue will be channeled into critical infrastructure, education, and healthcare, while also boosting states’ allocations since VAT is shared among the three tiers of government.

Experts say the move signals Nigeria’s seriousness in taxing the digital economy, in line with global best practices. However, concerns remain that the VAT burden may be passed down to Nigerian consumers through higher subscription and service fees.

The government assured citizens that the tax policy is designed to strengthen revenue generation without stifling the growth of digital businesses in the country