OpenAI will begin collecting 7.5% value-added tax (VAT) on its services in Nigeria starting November 1, 2025.
In an email sent to users, the company said the new charge complies with Section 10 of the Value Added Tax Act, Laws of the Federation of Nigeria 2004 (as amended) and the FIRS Information Circular 2021/19.
The 7.5% VAT will apply to all paid subscriptions, including ChatGPT Plus and any other OpenAI services billed in Nigeria.
The company advised users with a valid Tax Identification Number (TIN) to include it in the payment section of their OpenAI account to ensure proper tax documentation.
This move comes as Nigeria continues to tighten tax compliance for foreign digital service providers operating in the country.
Companies like Google already announced in 2022 that they would begin charging Nigerians VAT on their products.
It is also evident that the likes of Netflix, Facebook, and Amazon have already implemented similar VAT policies on their Nigerian users, as recent news reports stated that Nigeria made ₦600 billion in VAT from these companies.
While the VAT directives for foreign companies isn’t new, amendments to the VAT Act now compel non-resident digital firms to collect VAT directly from Nigerian users and remit it to the FIRS.
Officials insist there are no new taxes under President Tinubu. Instead, the focus is on restructuring existing ones, consolidating levies, and ensuring compliance. “I challenge anyone to point to one newly added tax,” said Taiwo Oyedele, Chairman, Presidential Committee on Fiscal Policy & Tax Reforms.
Meanwhile, OpenAI’s compliance further signals the growing integration of global tech firms into Nigeria’s digital tax system, a trend that has its pros and cons for the country.
While the country would be able to generate income from global companies that offer services to Nigerians, it also means that users and companies that use these services would have to pay more for their services.
Currently, ChatGPT Plus users pay ₦31,500 ($20) per month, with the inclusion of a 7.5% VAT; they will now pay ₦33,862.50 ($22.43).
This price increase could also affect AI startups like Decide and ChatATP, which have built businesses on the infrastructure created by OpenAI.
Interestingly, OpenAI just opened up a cheaper subscription tier of ₦7,000 a month to Nigerians, a way to cushion the effect of the price hike.
