Starting November 1, 2025, ChatGPT users in Nigeria will see an increase in their subscription fees as OpenAI begins implementing a 7.5% Value Added Tax (VAT) on its paid services in compliance with Nigerian tax laws.
The new tax will apply to all OpenAI products with billing features, including ChatGPT Plus, raising the monthly cost from ₦31,500 ($20) to about ₦33,862.50 ($22.43).
In an email to Nigerian users, OpenAI explained that the adjustment follows Section 10 of the Value Added Tax Act (as amended) and the Federal Inland Revenue Service (FIRS) Information Circular 2021/19. The company also urged subscribers to include their Tax Identification Number (TIN) in their payment settings for proper tax documentation.
With this development, OpenAI joins other major tech companies — including Google, Netflix, Amazon, and Meta — that already apply VAT to Nigerian users under the government’s digital tax policy. Authorities say the policy ensures fair taxation of foreign service providers earning from the Nigerian market.
Government officials argue that the VAT framework does not introduce a new tax but enforces compliance among international firms offering digital services in Nigeria. Under the updated rules, foreign digital platforms must collect VAT from users and remit it directly to FIRS.
While the policy is expected to strengthen government revenue, it also means higher costs for local subscribers, startups, and developers who rely on OpenAI tools — a concern for Nigeria’s growing tech ecosystem.
According to the National Information Technology Development Agency (NITDA), foreign digital firms such as Google, Microsoft, and TikTok paid about ₦2.55 trillion in taxes during 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, disclosed that Nigeria had collected over ₦600 billion in VAT from global platforms including Facebook, Amazon, and Netflix.
Osanekwu noted that amendments to the VAT Act enabled FIRS to register non-resident digital companies as tax collection agents, ensuring Nigeria benefits from taxes on locally consumed but foreign-delivered digital services.
“These are not Nigerian entities, but they are now paying VAT under Section 10 of the VAT Act,” Osanekwu said during a media workshop in Abuja, emphasizing that the move aligns with international tax standards.
