ChatGPT users in Nigeria will pay more for their subscriptions from November 1, 2025, as OpenAI begins implementing a 7.5% value-added tax (VAT) on all its paid services in line with Nigerian tax laws.
The new charge will apply to all billable OpenAI offerings, including ChatGPT Plus, increasing the monthly subscription fee from N31,500 ($20) to about N33,862.50 ($22.43).
OpenAI disclosed the change in an email to users, noting that it complies with Section 10 of the Value Added Tax Act, Laws of the Federation of Nigeria 2004 (as amended), and the Federal Inland Revenue Service (FIRS) Information Circular 2021/19.
TIN now required for subscription
The company advised users to include their Tax Identification Number (TIN) in their payment settings to ensure proper tax documentation.
The move aligns OpenAI with other global tech giants such as Google, Netflix, Amazon, and Meta, which have already begun charging Nigerian users VAT on digital services. Recent reports indicate that Nigeria has generated billions in VAT from these foreign service providers.
By complying with Nigeria’s VAT rules, OpenAI becomes part of the country’s expanding digital tax ecosystem.
- However, while the policy supports government revenue generation, it also means higher costs for Nigerian subscribers and startups that rely on OpenAI’s tools, potentially increasing operational expenses across the local AI and tech landscape.
- Under Nigeria’s updated VAT framework, non-resident digital companies offering services to local users must collect VAT and remit it directly to the FIRS.
- Government officials have maintained that this policy does not introduce new taxes but rather strengthens compliance and broadens the tax base.
What you should know
Last December, the National Information Technology Development Agency (NITDA) revealed that foreign digital companies operating in the country, including Google, Microsoft, and TikTok, among others, paid a total of N2.55 trillion in taxes in the first half of 2024.
Similarly, in September this year, the Special Adviser on Tax Policy to the Chairman of the Tax Reforms Committee, Mr Mathew Osanekwu, revealed that Nigeria had successfully collected over N600 billion in Value Added Tax from global digital service providers such as Facebook, Amazon, and Netflix.
He explained that amendments to the VAT Act had empowered the Federal Inland Revenue Service to bring non-resident companies offering services in Nigeria into the tax net.
“These are not Nigerian entities, but they are now paying VAT under Section 10 of the VAT Act. They are registered in Nigeria and are also appointed as agents of collection,” Osanekwu stated during a workshop for media practitioners in Abuja.
He stressed that the move aligns with global best practices and ensures Nigeria benefits from taxes on services consumed locally but delivered by foreign companies.
