Nigerian users of ChatGPT will begin paying more for their subscriptions starting November 1, 2025, as OpenAI begins implementing a 7.5% Value-Added Tax (VAT) on all its paid services in compliance with Nigerian tax laws.
The new charge affects all billable OpenAI offerings, including ChatGPT Plus, which will see its monthly fee increase from ₦31,500 ($20) to approximately ₦33,862.50 ($22.43).
In an email sent to users, OpenAI explained that the adjustment aligns with Section 10 of the Value Added Tax Act, Laws of the Federation of Nigeria 2004 (as amended), as well as the Federal Inland Revenue Service (FIRS) Information Circular 2021/19.
The company advised subscribers to add their Tax Identification Number (TIN) in their payment settings to ensure accurate tax documentation and compliance.
With this move, OpenAI joins other global tech giants such as Google, Netflix, Amazon, and Meta, which have already started collecting VAT from Nigerian users for digital services.
Industry reports show that Nigeria has generated billions of naira in VAT from these foreign service providers, reflecting the government’s growing success in taxing the country’s expanding digital economy.
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 driving up operational expenses in the local tech and AI ecosystem.
Under Nigeria’s updated VAT framework, non-resident digital companies offering services to Nigerian customers are required to collect VAT and remit it directly to the FIRS.
Government officials have clarified that this measure does not introduce a new tax but rather broadens the tax base and ensures fair compliance among both local and foreign service providers.
Last December, the National Information Technology Development Agency (NITDA) revealed that global digital companies, including Google, Microsoft, and TikTok, remitted a total of ₦2.55 trillion in taxes during the first half of 2024.
Similarly, in September 2025, Mr. Mathew Osanekwu, Special Adviser on Tax Policy to the Chairman of the Tax Reforms Committee, disclosed that Nigeria had collected over ₦600 billion in VAT from international platforms such as Facebook, Amazon, and Netflix.
He emphasized that the VAT Act amendments empowered the FIRS to integrate non-resident companies into Nigeria’s tax system.
“These are not Nigerian entities, but they are now paying VAT under Section 10 of the VAT Act. They are registered in Nigeria and also appointed as agents of collection,” Osanekwu said during a workshop in Abuja.
He added that the move reflects global best practices, ensuring Nigeria benefits from taxes on services consumed locally but delivered by foreign digital companies.
