Nigeria proposes 5% excise duty on gambling and telecommunications

The Nigerian Federal Government has proposed a new tax bill that aims to impose a 5% excise duty on telecommunications, gaming, and betting services. This initiative is part of a broader effort to reform the country's tax framework and increase non-oil revenue amidst ongoing economic challenges.

The bill, titled “A Bill for an Act to Repeal Certain Acts on Taxation and Consolidate the Legal Frameworks relating to Taxation and Enact the Nigeria Tax Act to Provide for Taxation of Income, Transactions, and Instruments, and Related Matters,” was introduced on October 4, 2024, and is currently under consideration by the National Assembly. It outlines that services such as gaming, gambling, lotteries, and betting will be subject to this excise duty alongside telecommunications services, which include both postpaid and prepaid options regulated by the Nigerian Communications Commission.

According to the proposed legislation, any service transaction within these sectors will incur the 5% excise duty. The bill specifies that "services, including telecommunications, gaming, gambling, betting, and lotteries... provided in Nigeria shall be charged with duties of excise at the rates specified under the Tenth Schedule to this Act" . 

Gambling in Nigeria is regulated by the National Lottery Act of 2005, along with the National Lottery Regulations of 2007 and the Gaming Machines Prohibition Act of 1977. These laws establish the legal framework for various gambling activities in the country, including lotteries, sports betting, and other games of chance.