ChatGPT Users in Nigeria to Pay More as OpenAI Implements 7.5% VAT From November 1
By Joseph Iyaji | Akahi News
Nigerian subscribers of ChatGPT will soon begin paying more for their monthly plans as OpenAI introduces a 7.5% Value Added Tax (VAT) on all its paid services starting November 1, 2025, in full compliance with the country’s tax laws.
According to information obtained by Akahi News, the change affects all billable OpenAI offerings, including the ChatGPT Plus plan, whose monthly fee will rise from ₦31,500 ($20) to approximately ₦33,862.50 ($22.43).
OpenAI Complies with Nigerian Tax Laws
In an email to users, OpenAI explained that the VAT adjustment aligns 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.
The company also advised users to include their Tax Identification Number (TIN) in their payment settings to ensure accurate tax documentation.
As Akahi News reports, the move brings OpenAI in line with other global tech giants—such as Google, Netflix, Amazon, and Meta—that have already begun charging Nigerian users VAT on digital services. This inclusion further strengthens Nigeria’s digital tax ecosystem and expands the government’s tax base.
Impact on Nigerian Subscribers and Tech Startups
While the new policy boosts government revenue, Akahi News notes that it also presents challenges for Nigerian individuals, startups, and businesses that rely on OpenAI’s AI tools.
With rising costs, many small enterprises that use ChatGPT for content creation, automation, and customer service may face higher operational expenses. Tech analysts told Akahi News that although the VAT is legally justified, it could slow down AI adoption among local entrepreneurs and students.
Under the updated VAT framework, non-resident digital companies offering services to Nigerian users must collect VAT and remit it directly to the FIRS—a measure that ensures transparency and accountability.
Government officials maintain that this does not introduce a new tax, but simply broadens compliance and strengthens enforcement across the digital economy.
Nigeria’s Expanding Digital Tax Base
As tracked by Akahi News, Nigeria has recorded remarkable growth in VAT collection from foreign digital service providers.
Last December, the National Information Technology Development Agency (NITDA) disclosed that companies such as Google, Microsoft, and TikTok paid a combined ₦2.55 trillion in taxes within the first half of 2024.
Similarly, in September 2025, the Special Adviser on Tax Policy to the Chairman of the Tax Reforms Committee, Mr. Mathew Osanekwu, revealed that the FIRS successfully collected over ₦600 billion in VAT from global tech firms like Facebook, Amazon, and Netflix.
“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 said during a workshop in Abuja.
He added that the policy aligns with global best practices, ensuring that Nigeria benefits from taxes on digital services consumed locally but rendered by foreign companies.
Akahi News Insight
Akahi News observes that this new compliance by OpenAI signifies Nigeria’s growing assertiveness in regulating the global digital economy. As more international tech companies integrate local tax rules, the country could see stronger fiscal stability—though consumers may continue to feel the squeeze.
For users and creators who rely on AI technology for education, business, and content production, the increase may prompt a rethink of subscription models or migration to alternative platforms.
Still, Akahi News believes that proper tax implementation—coupled with digital inclusion initiatives—can help balance innovation and governance in Nigeria’s fast-evolving tech sector.
Akahi News will continue monitoring developments surrounding OpenAI’s VAT implementation and its broader impact on Nigeria’s digital economy.
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