Nigeria: NITDA Flags X and TikTok for Tax Non-Compliance in Nigeria

The National Information Technology Development Agency (NITDA) has accused social media platforms X (formerly Twitter) and TikTok of failing to meet tax filing obligations as mandated by Nigeria’s regulatory framework.

This disclosure is outlined in a report titled “Analysis of Compliance with Laws and Misinformation Management by Social Media Platforms in Nigeria”, obtained by PRNigeria. The report highlights that while platforms such as Google, LinkedIn, and Meta have adhered to tax compliance requirements stipulated in the Code of Practice for Interactive Computer Service Platforms and Internet Intermediaries (CoP for ICSP/II), TikTok and X remain non-compliant in this regard.

Mixed Compliance Among Large Service Platforms

Despite the tax compliance lapses, all major Large Service Platforms (LSPs) have registered with Nigeria’s Corporate Affairs Commission (CAC). However, compliance with other mandates under the Code of Practice has been inconsistent. These mandates include:

• Establishing physical offices in Nigeria.
• Appointing liaison officers for effective communication with the government.
• Engaging certified fact-checkers to combat misinformation.
• Submitting annual compliance reports to regulatory authorities.

Regulatory Framework and Enforcement

Introduced by NITDA in collaboration with the Nigerian Communications Commission (NCC) and the National Broadcasting Commission (NBC) in September 2022, the Code of Practice aims to foster accountability, curb online harm, and create a safer digital ecosystem. Part II, Section 10 of the Code specifically mandates the submission of annual compliance reports to enhance transparency and ensure adherence to regulatory standards.

Content Moderation Efforts

The report also highlights significant content moderation efforts undertaken by tech platforms in 2023. Social media platforms collectively deactivated millions of accounts and removed millions of posts for violating community guidelines and provisions of the Code. Key statistics include:

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

The report acknowledges these actions as critical steps in mitigating harmful content such as fake accounts, child exploitation material, hate speech, and misinformation.

A Call for Greater Accountability

NITDA emphasized the importance of compliance with the Code, underscoring its role in addressing the dual nature of social media as both a tool for societal progress and a potential source of harm. The agency has called on all platforms to prioritize adherence to regulatory standards to build trust, safeguard users, and prevent the misuse of digital platforms.

“The report underscores the importance of the Code in creating a transparent and responsible digital ecosystem in Nigeria,” it stated.

Broader Implications

This development signals Nigeria’s increasing scrutiny of global tech companies operating within its borders, emphasizing the need for stricter adherence to local regulations. As NITDA enforces compliance, it aims to balance the benefits of digital innovation with the need to address its potential risks.