The Nigerian government is set to introduce a 5% tax on telecommunication, gaming, and betting services as part of its Economic Stabilization Bills, recently submitted to the National Assembly. This initiative is aimed at enhancing the country’s tax framework amid ongoing economic challenges.
The proposed legislation outlines the introduction of excise duties on various services, including telecommunications, gaming, gambling, lotteries, and betting within Nigeria. As a result, users of these services can expect increased costs, reflecting the government’s broader strategy to raise revenue.
According to the bill, “Services, including telecommunications, gaming, gambling, betting, and lotteries, however described, provided in Nigeria shall be charged with duties of excise at the rates specified under the Tenth Schedule to this Act in a manner as may be prescribed by the Service.
This tax initiative follows the approval of the bill by the Federal Executive Council in September 2024, based on recommendations from the Presidential Committee on Fiscal Policy and Tax Reforms. In addition to the proposed 5% excise tax, the bill also seeks to impose a 25% tax on Nigerians earning over N1.5 million in salaries.
If passed by the National Assembly, the bill is expected to take effect in 2025. Notably, this tax proposal comes after former Minister of Communications and Digital Economy, Isa Pantami, announced in May 2023 that the sector would be exempt from such taxes.
