The Nigerian Government has proposed a five per cent excise duty on telecommunications services, gaming, and betting activities as part of a new bill aimed at overhauling 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.
A review of the proposed legislation on Friday revealed plans to impose excise duties on services such as telecoms, gaming, gambling, lotteries, and betting offered in Nigeria.
One section of the bill states, “The amount of an excisable transaction is the amount chargeable for the service by the service provider, both in money or money’s worth.
“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.”
The bill outlines that telecom services, including both postpaid and prepaid services regulated by the Nigerian Communications Commission (NCC), will attract a five per cent duty. The same rate will apply to gaming, gambling, betting, and lottery services.
Additionally, the bill introduces guidelines for currency transactions, stipulating that any difference between the Central Bank of Nigeria’s official exchange rate and the actual transaction rate will be subject to excise duty.
This new tax regime is part of the government’s efforts to increase non-oil revenue amid growing fiscal pressures. With the rapid expansion of the telecoms and betting sectors, authorities aim to broaden the revenue base. The bill also seeks to ensure that currency exchange transactions align with official CBN rates, with any surplus subject to excise duty under a self-assessment model.