The National Information Technology Development Agency (NITDA) has revealed that Information and Communication Technology (ICT) companies operating in Nigeria, including global giants like Google, Microsoft, and TikTok, paid a combined total of N2.55 trillion in taxes to the Nigerian government during the first half of 2024.
This announcement was made in a statement by NITDA’s Director of Corporate Communications and Media Relations, Hadiza Umar, on Tuesday. The data, sourced from the Federal Inland Revenue Service (FIRS) and the National Bureau of Statistics (NBS), highlights the significant economic contributions of the ICT sector.
Regulatory Compliance Drives Revenue Growth
NITDA emphasized the critical role of regulatory frameworks in fostering economic development. The agency commended tech companies such as Google, Microsoft, X (formerly Twitter), and TikTok for adhering to the Code of Practice for Interactive Computer Service Platforms/Internet Intermediaries. This compliance has enhanced government revenue while promoting accountability within the sector.
“Data from FIRS and NBS reveals that foreign digital companies, including social media platforms and internet intermediaries, contributed over N2.55 trillion (approximately $1.5 billion) in taxes in H1 2024. This underscores the impact of robust regulations in driving revenue growth in the digital economy,” the statement noted.
Promoting Transparency and Online Safety
NITDA highlighted the tax contributions as a reflection of Nigeria’s thriving digital economy. The agency reiterated its dedication to ensuring a safer and more transparent online environment for all Nigerians.
The Code of Practice, developed collaboratively by the Nigerian Communications Commission (NCC), the National Broadcasting Commission (NBC), and NITDA, provides guidelines for managing harmful content and enhancing user safety. In compliance with this framework, platforms like Google, X, Microsoft, and TikTok reported significant efforts to address harmful content in 2023:
- Content moderation: Over 65.8 million harmful pieces of content were removed.
- User complaints: 4.12 million complaints were addressed.
- Reinstated content: 379,433 pieces of content were re-uploaded after appeals.
- Account closures: More than 12 million accounts were deactivated or closed.
Collaboration for a Safer Digital Environment
NITDA acknowledged the importance of collaboration among stakeholders to maintain a responsible digital ecosystem. The agency reaffirmed its commitment to partnering with industry players to ensure the sustainability of progress in Nigeria’s digital economy.
The Broader Impact
The contributions of foreign tech companies not only bolster Nigeria’s revenue streams but also highlight the country’s potential as a leading digital hub in Africa. With continued regulatory compliance and industry partnerships, the digital economy’s role in national development is poised for further growth.
