ChatGPT users in Nigeria will pay more for their subscriptions from November 1, 2025, as OpenAI begins implementing a 7.5% value-added tax (VAT) on all its paid services in line with Nigerian tax laws.
The new charge will apply to all billable OpenAI offerings, including ChatGPT Plus, increasing the monthly subscription fee from N31,500 ($20) to about N33,862.50 ($22.43).
OpenAI disclosed the change in an email to users, noting that it complies with Section 10 of the Value Added Tax Act, Laws of the Federation of Nigeria 2004 (as amended), and the Federal Inland Revenue Service (FIRS) Information Circular 2021/19.
The company advised users to include their Tax Identification Number (TIN) in their payment settings to ensure proper tax documentation.
The move aligns OpenAI with other global tech giants such as Google, Netflix, Amazon, and Meta, which have already begun charging Nigerian users VAT on digital services. Recent reports indicate that Nigeria has generated billions in VAT from these foreign service providers.
By complying with Nigeria’s VAT rules, OpenAI becomes part of the country’s expanding digital tax ecosystem.
Last December, the National Information Technology Development Agency (NITDA) revealed that foreign digital companies operating in the country, including Google, Microsoft, and TikTok, among others, paid a total of N2.55 trillion in taxes in the first half of 2024.
Similarly, in September this year, the Special Adviser on Tax Policy to the Chairman of the Tax Reforms Committee, Mr Mathew Osanekwu, revealed that Nigeria had successfully collected over N600 billion in Value Added Tax from global digital service providers such as Facebook, Amazon, and Netflix.
He explained that amendments to the VAT Act had empowered the Federal Inland Revenue Service to bring non-resident companies offering services in Nigeria into the tax net.
He stressed that the move aligns with global best practices and ensures Nigeria benefits from taxes on services consumed locally but delivered by foreign companies.