Starting November 1, ChatGPT subscribers in Nigeria will feel the pinch as OpenAI enforces a 7.5% value-added tax (VAT) on all its paid plans, aligning with local tax laws.
The increase will push the monthly ChatGPT Plus fee from N31,500 to around N33,862.50, a shift OpenAI described in an email to users. OpenAI backs the move by citing Section 10 of the Value Added Tax Act, Laws of the Federation of Nigeria 2004 (as amended), along with guidance from the Federal Inland Revenue Service (FIRS) Information Circular 2021/19.
In its announcement, the company urged users to add their Tax Identification Number (TIN) in payment settings for accurate tax recording. The change places OpenAI among other global tech platforms such as Google, Netflix, Amazon, and Meta, that already collect VAT from Nigerian users.
While the development helps Nigeria capture tax revenue from foreign digital service providers, it also ramps up costs for individuals and startups that depend on OpenAI’s tools. Some tech firms warn of inevitable “operational pressures” as AI-driven ventures recalibrate budgets.
Nigeria’s updated VAT regime mandates that overseas digital firms serving local customers must collect and remit VAT directly to FIRS. Officials emphasize the move “does not introduce new taxes, but rather strengthens compliance and broadens the tax base.”
Previously, Nigeria’s tax authorities reported strong collection numbers: in the first half of 2024, foreign tech firms contributed over N2.55 trillion in taxes, and by September 2025, more than N600 billion had been collected from global digital services.
As the new charges take effect, Nigerian users of AI and digital platforms will have to adjust to steeper subscription costs and tighter fiscal alignment with government policy.
