The Federal Government has introduced a bill seeking to impose a five per cent excise duty on telecommunications services, as well as gaming and betting activities, as part of efforts to reform Nigeria’s tax framework.
The legislation, 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.
An analysis of the proposed law reveals plans to introduce excise duties on a range of services, including telecoms, gaming, gambling, lotteries, and betting operations within Nigeria.
A 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.”
According to the bill, telecommunications services—covering both postpaid and prepaid options under the Nigerian Communications Commission—will attract a five per cent excise duty. This same tax rate will also apply to gaming, gambling, betting, and lottery services.
The bill further outlines currency transaction guidelines, noting that any difference between the prevailing Central Bank of Nigeria (CBN) exchange rate and the actual transaction rate will be subject to excise duty.
This proposed tax reform aligns with the government’s objective to increase non-oil revenue amidst ongoing fiscal pressures. The rapid expansion of telecoms and betting sectors has prompted the government to explore new ways to broaden the nation’s revenue base.
The legislation also seeks to ensure currency exchange compliance with official CBN rates, with any excess difference to be paid as excise duty under a self-assessment model.
