The National Assembly is moving to reinstate a 5% excise duty on telecommunications and betting services in Nigeria, despite the previous exemption granted to the telecom sector by former President Muhammadu Buhari.
The initiative is outlined in an executive bill titled the “Nigeria Tax Bill 2024,” which seeks to reintroduce the excise duty. According to the bill, the taxable amount will be determined based on the charges levied by service providers, whether in monetary terms or equivalent value.
The bill states: “Services, including telecommunications, gaming, gambling, betting, and lotteries, however described, provided in Nigeria, shall be subject to excise duties at rates specified under the Tenth Schedule to this Act, in a manner prescribed by the Service.”
Additionally, the legislation addresses currency exchange transactions involving the naira, stipulating that such transactions must not exceed the prevailing official market rate authorized by the Central Bank of Nigeria (CBN).
Should the exchange rate for any transaction surpass the official rate, the excess amount will be subject to excise duty, assessed on a self-assessment basis in accordance with the Nigeria Tax Administration Act.
