Starting November 1, 2025, ChatGPT users in Nigeria will face higher subscription costs as OpenAI introduces a 7.5% Value Added Tax (VAT) on all paid plans in compliance with Nigerian tax laws.
The new charge affects all OpenAI services billed in Nigeria, including ChatGPT Plus, whose monthly subscription will rise from N31,500 ($20) to about N33,862.50 ($22.43). The company announced the change via email, explaining that it follows 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.
OpenAI also instructed subscribers to add their Tax Identification Number (TIN) in their payment settings for proper documentation. This adjustment aligns the company with other multinational tech platforms such as Google, Netflix, Amazon, and Meta, which already collect VAT from Nigerian users. Authorities say such taxes have contributed significantly to government revenue, generating billions from digital service providers.
By adhering to these regulations, OpenAI formally joins Nigeria’s growing digital tax network. However, while the policy boosts tax compliance and public revenue, it also raises costs for Nigerian users and tech startups dependent on OpenAI’s tools, potentially affecting operational budgets across the local technology and AI sectors.
Under Nigeria’s revised VAT structure, foreign digital companies providing services within the country are required to charge and remit VAT directly to the FIRS. Officials emphasize that this does not represent a new tax but rather an enforcement of existing obligations to expand the tax base and ensure fairness.
In December 2024, the National Information Technology Development Agency (NITDA) reported that foreign digital firms such as Google, Microsoft, and TikTok remitted a combined N2.55 trillion in taxes during the first half of that year. Likewise, in September 2025, Special Adviser on Tax Policy to the Tax Reforms Committee, Mathew Osanekwu, confirmed that more than N600 billion had been collected in VAT from platforms including Facebook, Amazon, and Netflix.
He explained that amendments to the VAT Act empowered FIRS to include non-resident service providers in Nigeria’s tax net. “These are not Nigerian entities, but they now pay VAT under Section 10 of the VAT Act. They are registered in Nigeria and appointed as collection agents,” Osanekwu noted at a media workshop in Abuja.
He added that the approach aligns with international standards, ensuring Nigeria benefits from taxes on digital services consumed within its borders.
