Despite the previous exemption for the telecom sector from the 5% excise duty approved by former President Muhammadu Buhari, the National Assembly has revived efforts to implement it. They have proposed a 5% excise duty on telecommunications services, gaming, betting, and lottery activities throughout Nigeria.

On July 6, 2023, President Bola Tinubu signed four executive orders, one of which suspended the 5% excise tax on telecom services to assist businesses and households in managing the tax increase. However, a new executive bill titled ‘Nigeria Tax Bill 2024’ now aims to reintroduce this excise duty.

Under the proposed bill, the excise duty will be calculated based on the charges from service providers, whether in cash or equivalent value. The bill specifies: “Services, including telecommunications, gaming, gambling, betting, and lotteries, however described, provided in Nigeria, shall be subject to excise duties at rates specified under the Tenth Schedule to this Act, in a manner prescribed by the Service.”

Furthermore, the bill contains provisions for currency exchange transactions involving the naira. It mandates that such transactions must not exceed the prevailing exchange rate in the official market, as authorized by the Central Bank of Nigeria (CBN). If the exchange rate for any transaction exceeds the official market rate, the seller will be required to pay the excess amount as excise duty, assessed on a self-assessment basis under the Nigeria Tax Administration Act.