Nigeria contemplates excise duties on lottery, gambling and telecoms

The Federal Government of Nigeria is considering the introduction of excise duties on lottery, gambling, and telecoms, as indicated in the International Monetary Fund (IMF) Staff report published on May 9.

The report notes that excises on telecommunications, lotteries, and gambling are under consideration but have been delayed. It's important to highlight that the IMF report also mentions an upcoming increase in the Value Added Tax (VAT) rate, scheduled for next year. Specifically, the report projects an increase in the VAT rate from 7.5% to 10% in 2025, followed by another increase to approximately 15% in 2026. This adjustment in VAT rates is part of a broader strategy aimed at enhancing revenue collection and reducing the fiscal deficit.

Notably, Nigerians invest approximately $2 billion annually in sports betting.