The Nigerian Federal Government has proposed a five-percent excise duty on telecommunications services, gaming, and betting activities as part of a new bill to overhaul Nigeria’s tax framework.
The bill, titled “A Bill for an Act to Repeal Certain Acts on Taxation and Consolidate the Legal Frameworks relating to Taxation and Enact the Nigeria Tax Act to Provide for Taxation of Income, Transactions, and Instruments, and Related Matters,” was dated October 4, 2024, and obtained from the National Assembly.
The excise duty structure outlines that telecoms services, including postpaid and prepaid services regulated by the Nigerian Communications Commission, will attract a five-percent duty, while gaming, gambling, betting, and lottery services will also be subject to excise duty.
The new tax regime is part of the government’s strategy to boost non-oil revenue amid fiscal pressures and widen the revenue base. The bill also aims to ensure currency exchanges align with official Central Bank of Nigeria rates, with any excess payable as excise duty under a self-assessment model.
