FG to Impose 5% Tax on Telecom, Gaming and Betting Services

The Nigerian government is set to impose a new 5 percent tax on telecommunication, gaming, and betting services.

This decision comes as part of an economic stabilization bill recently submitted to the National Assembly, aimed at addressing the country's ongoing fiscal challenges.

The proposed legislation, which was approved by the Federal Executive Council in September 2024, seeks to introduce excise duties on various services, including telecoms, gaming, gambling, lotteries, and betting.

According to the bill, "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."

This initiative marks a significant shift from previous policies. In May 2023, the former Minister of Communications and Digital Economy, Isa Pantami, announced an exemption of the telecom sector from such taxation.

However, the current administration believes that these measures are necessary to overhaul the country's tax framework and stabilize the economy amid fiscal pressures.

In addition to the 5 percent tax on services, the bill also proposes a 25 percent tax on individuals earning over N1.5 million annually. If passed by the National Assembly, these changes are expected to take effect in 2025.