The Federal Government of Nigeria has introduced a new bill proposing a 5% excise duty on telecommunications services, gaming, and betting activities as part of a comprehensive effort to reform the nation's tax framework.
The proposal, outlined in the "Nigeria Tax Act," aims to impose excise duties on various services across the country. 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 obtained from the National Assembly and is dated October 4, 2024.
Under the provisions of the bill, the government will apply a 5% excise duty on all telecommunications services—both postpaid and prepaid—regulated by the Nigerian Communications Commission. This duty will also extend to gaming, gambling, lotteries, and betting activities conducted within Nigeria.
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 means that all transactions related to these services will incur the excise duty once the bill is enacted.
Additionally, the bill addresses currency transactions, specifying that any discrepancies between the official exchange rate set by the Central Bank of Nigeria (CBN) and the actual transaction rate will also be subject to excise duties. The bill states that any excess value in the exchange rates will be payable as excise duty under a self-assessment model