Abuja, Nigeria – The Federal Government of Nigeria has introduced a new bill proposing a five per cent excise duty on telecommunications services, gaming, gambling, and betting activities. This move is part of broader efforts to reform Nigeria’s tax system and expand the government’s revenue base amidst growing fiscal challenges.
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,” the legislation was submitted to the National Assembly on October 4, 2024.
Under the bill, telecom services, both postpaid and prepaid, regulated by the Nigerian Communications Commission, will attract a five per cent excise duty. The same rate will apply to gaming, gambling, lotteries, and betting services. This marks the government’s intention to capitalize on the rapid growth in these sectors as a strategy to generate non-oil revenue.
Additionally, the bill includes provisions regarding currency transactions, stating that any difference between the Central Bank of Nigeria (CBN) exchange rate and the actual transaction rate will also be subject to excise duty, reinforcing efforts to streamline exchange rates and ensure compliance with CBN guidelines.
This tax reform is part of a wider government plan to overhaul Nigeria’s tax framework, diversifying income streams beyond oil revenue, and addressing fiscal pressures the country faces.