This shows how important American companies are to the Nigerian economy.
A recent survey has shown that companies from the United States of America (U.S.A) operating in Nigeria contribute N34.4 billion to tax revenue in 2016. This represents about 2.85 percent of country’s tax revenue for the year.
In the report titled: “Nigeria Economic Impact Survey”, these companies impact Nigerian economy through value-added activities. Most of these are in oil and gas, energy future, investment, jobs and communities.
The report was put together by the American Business Council (ABC) in collaboration with Accenture, General Electric (GE) and PricewaterhouseCoopers (PwC). During the study, 48 American companies operating in Nigeria were interviewed.
Mr Darrell McGraw, a Capital Markets Partner at PwC said: “It is a great time for American companies to be in Nigeria. In fact, there is a clear optimism now.”
“One of the headline figures that really resonate the net revenue of one trillion naira in 2016, so this was the course of 2017, Oil and Gas revenue generated by these companies represented 18% of Nigeria real GDP in 2016. This is an impressive contribution.”
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“The total tax contribution of the US companies operating in Nigeria was over N34 billion in 2016. 34 billion naira contributed to tax collection in Nigeria in 2016, if we look at the percentage of tax collected within the tax net, it is 25% of the tax collected in 2016. We believed it is a significant contribution to the Nigerian Government.”
The President of ABC, Mr Lazarus Angbazo also noted that the aim of the report was to assess the collective impact of these companies in Nigeria.
“...the numbers of US companies that are currently operating in Nigeria, the cumulative direct investment committed by this companies, revenue generated through taxes paid to the Government," he said.
"Also and how they have provided employment opportunities to Nigeria and boost the macro and microeconomics dynamics of the country."