FG Introduces 5% Excise Duty On Telecoms, Betting, Gaming Services, And Others

The Federal Government has unveiled a proposal for a five per cent excise duty on telecommunications services, gaming, and betting as part of a comprehensive new tax reform initiative aimed at revamping Nigeria’s taxation system.
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,” was dated October 4, 2024, and has been sourced from the National Assembly.
The proposed bill seeks to establish excise duties on a variety of services, including telecoms, gaming, lotteries, and betting operations within Nigeria. As outlined in the bill, “The amount of an excisable transaction is the amount chargeable for the service by the service provider, whether in money or equivalent value.”
Specifically, the excise duty structure indicates that both postpaid and prepaid telecommunications services regulated by the Nigerian Communications Commission will incur a five per cent duty, mirroring the same rate applicable to gaming, gambling, and lottery services.
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Additionally, the bill sets forth regulations regarding currency transactions, asserting that any disparity between the Central Bank of Nigeria’s official exchange rate and the actual transaction rate will be subject to excise duty. This new tax framework is part of the government’s broader strategy to enhance non-oil revenue in response to ongoing fiscal challenges.
As the telecoms and betting industries continue to experience rapid growth, the government aims to diversify its revenue streams. Furthermore, the bill stipulates that currency exchanges should conform with the official CBN rates, with any discrepancies being liable for excise duty under a self-assessment framework.
Well done 👍