Despite a previous exemption granted by former President Muhammadu Buhari, the National Assembly is seeking to implement a 5% excise duty on telecommunications services, as well as gaming, betting, and lottery activities in Nigeria.
In July 2023, President Bola Tinubu signed four executive orders, one of which suspended the proposed excise tax to alleviate the financial burden on businesses and households. However, a new executive bill titled “Nigeria Tax Bill 2024” aims to reintroduce this tax.
The bill stipulates that the excise duty will be based on the charges set by service providers, whether in monetary terms or equivalent value. It states: “Services, including telecommunications, gaming, gambling, betting, and lotteries, however described, provided in Nigeria, shall be subject to excise duties at rates specified under the Tenth Schedule to this Act.”
Additionally, the bill includes provisions for currency exchange transactions involving the naira, mandating that these transactions must adhere to the prevailing official market rate as authorized by the Central Bank of Nigeria (CBN).
If the exchange rate exceeds the official rate, the excess will be subject to excise duty, assessed on a self-assessment basis under the Nigeria Tax Administration Act.
