NITDA hail tech giants over payment of N2.55trn in taxes
The National Information Technology Development Agency (NITDA) has revealed that foreign digital companies, including Google, Microsoft, X (formerly Twitter), and TikTok, contributed a staggering N2.55 trillion in taxes during the first half of 2024.
This landmark figure underscores the increasing impact of digital regulatory frameworks on revenue generation and compliance in Nigeria.
The disclosure, based on data from the Federal Inland Revenue Service (FIRS) and the National Bureau of Statistics (NBS), was announced in a statement by NITDA’s Director of Corporate Communications & Media Relations, Mrs. Hadiza Umar, on Tuesday.
NITDA attributed this revenue growth to the implementation of the Code of Practice for Interactive Computer Service Platforms/Internet Intermediaries.
The Code, established in June 2022 in collaboration with the Nigerian Communications Commission (NCC) and the National Broadcasting Commission (NBC), sets stringent guidelines for promoting online safety, addressing harmful content, and enhancing digital accountability.
Experts in Nigeria’s tech ecosystem have lauded the initiative as a game-changer.
According to tech policy analyst Dr. Akin Fajobi, “The success of this regulatory framework demonstrates that a well-structured compliance regime not only fosters safer digital environments but also drives economic gains by encouraging tax contributions from global players.”
Highlighting the progress made by these platforms, NITDA reported that in 2023 alone it received 4,125,283 complaints, 65.8 million were taken down,re-uploaded content post-appeal stood at 379,433, while 12.09 million accounts were closed or deactivated.
The report commended the efforts of companies like Google, Microsoft, TikTok, and X in adhering to the Code and addressing user safety concerns.
It also emphasized the need for sustained collaboration between regulators and digital platforms to tackle emerging challenges in the digital space.
Economists view the N2.55 trillion tax contributions as a critical boost to Nigeria’s economy. Financial analyst Adanna Okeke remarked, “This revenue signals the untapped potential of the digital economy. With further improvements in enforcement and collaboration, Nigeria could strengthen its fiscal position significantly.”
However, challenges persist. Critics argue that while the regulations have improved compliance and safety, they may pose operational hurdles for smaller platforms.
Additionally, balancing content moderation with free speech remains a sensitive issue.
NITDA reiterated its commitment to innovation and inclusivity, stressing the importance of adaptive strategies to address emerging digital challenges. The agency called on all stakeholders to enhance efforts in creating a safer, more accountable digital environment while ensuring robust economic benefits.
The digital economy, buoyed by increased compliance and strategic regulations, is proving to be a vital pillar for Nigeria’s growth. As the country navigates the complexities of online governance, its ability to harness the full potential of global tech companies will be crucial in shaping its future.
