The National Assembly has put forward a proposal for a five percent excise duty on telecommunications services, as well as gaming, betting, and lottery activities.

On July 6, 2023, President Bola Tinubu signed four executive orders, including one that suspended the 5 percent excise tax on telecommunication services to mitigate the negative effects of tax adjustments on businesses and households.

According to an executive bill titled ‘Nigeria Tax Bill 2024’, the National Assembly is seeking to reintroduce the excise duty.

The bill states that the amount subject to excise duty for a transaction is the chargeable amount for the service provided, “whether in money or its equivalent.”

“Services, including telecommunications, gaming, gambling, betting, and lotteries in any form, provided within Nigeria, shall be subject to excise duties at the rates specified under the Tenth Schedule of this Act, as prescribed by the Service,” the document states.

Additionally, for currency exchange transactions involving the naira, conducted inside or outside Nigeria, the National Assembly recommended that the exchange rate should not exceed the prevailing official market rate, as authorized by the Central Bank of Nigeria (CBN).

The legislature further stated that if the exchange rate exceeds the official market rate, the excess amount must be paid as excise duty by the seller, assessed on a self-assessment basis as stipulated in the Nigeria Tax Administration Act.