The Federal Government earned N2.78 trillion in taxes from information, communications technology and telecoms firms in the first half (H1).
Some foreign digital companies operating in Nigeria, including Google, Microsoft and TikTok paid N2.55 trillion ($1.5 billion) in taxes in the period.
The details were revealed by the National Information Technology Development Agency (NITDA).
In the first half of 2024, MTN Nigeria, the country’s largest mobile network operator, paid N232 billion in taxes – an astonishing 586 per cent increase from last year. It paid 54 separate taxes in 2024 alone across various federal, state and local government agencies.
NITDA’s Director of Corporate Communications and Media Relations, Hadiza Umar, relying on data from the Federal Inland Revenue Service (FIRS) and the National Bureau of Statistics (NBS) disclosed earnings from the international digital firms.
The Development agency commended Google, Microsoft, X and TikTok for their compliance with the Code of Practice for Interactive Computer Service Platforms/Internet Intermediaries.
The Code, issued jointly by the Nigerian Communications Commission (NCC), National Broadcasting Commission (NBC) and NITDA outlined clear guidelines for promoting online safety and managing harmful content.
NITDA noted that this has also boosted the government’s revenue by the digital companies paying taxes.
“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) operating in Nigeria, contributed over N2.55 trillion (approximately $1.5 billion) in taxes in H1 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.
Providing an update on the level of compliance with the Code of Practice for Interactive Computer Service Platforms/Internet Intermediaries, NITDA said all the digital platforms have been making efforts to address user safety concerns in line with the Code and the platforms’ community guidelines.
Further analysis of the document showed that the platforms received 4,125,283 registered complaints in 2023; content takedown, 65.8 million; content removed and re-uploaded after an appeal by users, 379,433, closed and deactivated accounts, 12.09 million.
While commending the progress made, NITDA emphasised the need for continued collaboration and innovation to address emerging challenges and ensure a safer and more responsible digital space.
Recall that NITDA in June 2022 announced the Code, which seeks to regulate social media blogs and online publications.
Part of the Code dictates that internet platforms including social media must act expeditiously upon receiving a notice from a user, or an authorised government agency of the presence of unlawful content on its Platform.
Platforms must also act quickly to remove, disable, or block access to non-consensual content that exposes a person’s private areas, full or partial nudity, sexual act, deepfake or revenge porn, where such content is targeted to harass, disrepute or intimidate an individual.
Meanwhile, for the telcos, the Association of Licensed Telecommunication Operators of Nigeria (ALTON), noted that state governments collect the majority of these taxes.
These taxes include building permits, sewage fees, convulsion levies, storage licenses, and more. ALTON’s President, Gbenga Adebayo, disclosed this at a forum, stressing that these taxes increased the operational costs of telcos by 50 per cent in 2024.
“The multiple taxes are driven primarily by revenue,” Adebayo said. “There is a perception that the telecoms industry is highly profitable and so can be treated as a cash cow.”
