TikTok and X Flagged for Tax Evasion in Nigeria – Here’s Why

TikTok and X face scrutiny from NITDA over tax compliance failures, as Nigeria enforces accountability in its digital ecosystem.

The National Information Technology Development Agency (NITDA) has called out TikTok and X (formerly Twitter) for failing to meet tax filing obligations under Nigeria’s regulatory framework. This announcement, detailed in NITDA’s report “Analysis of Compliance with Laws and Misinformation Management by Social Media Platforms in Nigeria.”

NITDA’s report highlights a glaring compliance gap, with TikTok and X failing to meet tax obligations, while platforms like Google, LinkedIn, and Meta have successfully adhered to the Code of Practice for Interactive Computer Service Platforms and Internet Intermediaries (CoP for ICSP/II).

The agency reiterated the importance of the Code in regulating the dual nature of social media, stating:

“The report underscores the importance of the Code in addressing the dualities of social media as both a tool for progress and a potential source of harm. By enforcing compliance, NITDA seeks to create a transparent and responsible digital ecosystem in Nigeria.”

Why Tax Compliance Matters

Tax compliance among global digital platforms is essential to:

1. Boost National Revenue: Taxes provide critical funds for public infrastructure and services.
2. Ensure Fair Competition: Local businesses can thrive on a level playing field when all companies follow the same rules.
3. Promote Accountability: Compliance builds trust between users, regulators, and platforms, ensuring that companies uphold ethical standards.

Inside Nigeria’s Code of Practice

Introduced in September 2022 in collaboration with the Nigerian Communications Commission (NCC) and the National Broadcasting Commission (NBC), the Code of Practice is designed to enhance accountability and mitigate online harm. It requires platforms to:

• Open physical offices in Nigeria.
• Designate local liaison officers for government engagement.
• Employ certified fact-checkers to combat misinformation.

Content Moderation Efforts in 2023

The NITDA report praised other platforms for their proactive approach to managing harmful content. In 2023 alone, millions of accounts and posts were removed for violating community guidelines:

• Google: 9,610,054 accounts, 59,670,247 posts
• LinkedIn: 691,596 accounts, 237,837 posts
• TikTok: 599,776 accounts, 4,578,858 posts
• X: 1,198,205 accounts, 168,500 posts

NITDA has urged TikTok and X to prioritize compliance with Nigerian tax laws and other regulatory requirements. By adhering to the Code, platforms can contribute to a digital ecosystem that benefits businesses, consumers, and the broader economy.

The agency’s efforts are echoed by industry leaders, including Chief Leo Okafor, who emphasized the importance of regulatory adherence across sectors:

“Compliance is key to ensuring the success of these initiatives and fostering trust in our systems.”