Nigeria has collected more than USD 120 million in Value Added Tax (VAT) from non-resident digital service providers over the past three years, demonstrating how practical tax reforms can help African countries protect their tax base and strengthen domestic revenue mobilisation in the digital economy.
As a founding member of ATAF, Nigeria has both contributed to and benefited from ATAF’s technical work on VAT policy. According to Mr Mathew Osanekwu, Director of Investigations at the Nigeria Revenue Service (NRS), the country’s reforms drew on the ATAF VAT Digital Services Toolkit for Africa and other VAT policy products to strengthen the taxation of digital services, including the introduction of place-of-supply rules and a simplified VAT compliance regime for non-resident suppliers.
These reforms enabled Nigeria to effectively tax international digital service providers, generating approximately USD 21 million in 2023, USD 40–43 million in 2024, and an estimated USD 56–68 million in 2025.
Reflecting on the reforms, Mr Osanekwu noted that ATAF’s technical guidance had provided practical solutions that helped shape Nigeria’s approach to taxing the digital economy.
“ATAF’s VAT Digital Services Toolkit provided practical guidance that informed our policy direction. It helped us strengthen our place-of-supply rules and establish a simplified VAT compliance regime for non-resident suppliers. Beyond digital services, ATAF’s VAT policy products also contributed to broader VAT reforms and informed the design and implementation of our e-invoicing initiative.”
Beyond the taxation of digital services, ATAF’s VAT products also informed broader VAT policy reforms and supported the design and implementation of Nigeria’s electronic invoicing (e-invoicing) system, further strengthening tax administration and improving compliance.
Nigeria’s experience demonstrates how African-developed tax solutions are helping countries respond to emerging tax challenges, modernise their tax systems and strengthen domestic revenue mobilisation.
