The Federal Government has proposed a five per cent excise duty on telecommunications services, gaming, and betting activities as part of a new bill to reform 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.
An analysis of the bill revealed plans to introduce excise duties on services like telecoms, gaming, gambling, lotteries, and betting offered in 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.”
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It adds, “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, telecom services, including postpaid and prepaid services regulated by the Nigerian Communications Commission, will attract a five per cent duty.
The same rate will apply to services such as gaming, gambling, betting, and lotteries.
Additionally, the bill provides guidelines on currency transactions, specifying 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 fiscal challenges, targeting growing sectors like telecoms and betting to expand the revenue base.
