ChatGPT Users in Nigeria Face New VAT Charges

OpenAI has announced that it will start adding a 7.5% value-added tax (VAT) to all its services in Nigeria from 1 November 2025. This means that Nigerians using ChatGPT Plus and other OpenAI tools will soon pay a little extra for their subscriptions.

In an email sent to users, OpenAI explained that the new charge follows Section 10 of the Value Added Tax Act (2004) and the FIRS Information Circular 2021/19, which require non-resident digital firms to collect and remit VAT on services sold in Nigeria. The company also encouraged users with a valid Tax Identification Number (TIN) to add it to their account settings for proper tax documentation.

Nigeria Tightens Digital Tax Compliance

This development is part of Nigeria’s broader push to strengthen tax compliance among international digital platforms. Tech giants such as Google, Netflix, Facebook, and Amazon have already begun collecting VAT from Nigerian users — a move that has contributed to over ₦600 billion in VAT revenue, according to government reports.

Officials maintain that no new taxes have been introduced under the current administration. Instead, the focus has been on enforcing existing tax laws and improving transparency. “I challenge anyone to point to one newly added tax,” said Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, stressing that the reforms only aim to streamline existing levies and ensure compliance.

What the Price Change Means for Users

The 7.5% VAT will apply to all paid plans, raising the ChatGPT Plus subscription from ₦31,500 ($20) to ₦33,862.50 ($22.43) per month. While the increase may appear small, it adds up for regular users, especially startups and freelancers who rely heavily on the tool.

Some local AI startups, such as Decide and ChatATP, could also feel the impact, as their products depend on OpenAI’s infrastructure. However, OpenAI has introduced a ₦7,000 monthly plan for Nigerians to ease the cost and keep the service accessible.

Balancing Growth and Cost

For Nigeria, OpenAI’s compliance represents another step in aligning with global digital tax practices. While the VAT policy ensures that international companies contribute fairly to local revenue, it also means higher prices for consumers and small businesses operating on tight budgets.

Still, the policy could strengthen Nigeria’s fiscal base, creating opportunities to reinvest in its growing digital economy — one that depends on technology, innovation, and fair taxation.