ChatGPT users in Nigeria will pay more for their subscriptions beginning November 1, 2025, as OpenAI, the American artificial intelligence company behind the popular chatbot, implements a 7.5% Value Added Tax (VAT) in line with Nigerian tax laws.
The price adjustment will apply to all paid OpenAI services, including ChatGPT Plus, whose monthly subscription fee will increase from ₦31,500 ($20) to about ₦33,862.50 ($22.43).
In an email sent to Nigerian subscribers, OpenAI explained that the new charge 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 also advised users to include their Tax Identification Number (TIN) in their payment settings to ensure proper documentation and compliance with local tax requirements.
OpenAI’s compliance brings it in line with other global technology companies such as Google, Netflix, Amazon, and Meta, which already collect VAT from Nigerian users for digital services. The move forms part of Nigeria’s ongoing efforts to strengthen tax compliance within its growing digital economy.
In recent years, the federal government has intensified its push to ensure that foreign digital companies offering services to Nigerians contribute their fair share of taxes. The introduction of VAT on non-resident service providers aims to expand the country’s tax base and ensure equitable taxation of cross-border digital transactions without creating new levies.
While this measure supports the government’s revenue drive, it could lead to higher costs for startups, small businesses, and individuals who rely on OpenAI’s tools for work, research, and innovation. Analysts have noted that the change may increase operational expenses for technology-focused enterprises already struggling with rising business costs and currency challenges.
Under Nigeria’s revised VAT framework, foreign digital companies are required to register for VAT, charge customers in Nigeria, and remit the collected tax directly to the FIRS. Government officials have clarified that this is not a new tax but an enforcement of existing laws to ensure fairness in the taxation of digital services consumed locally.
In December 2024, the National Information Technology Development Agency (NITDA) reported that international technology companies, including Google, Microsoft, and TikTok, remitted about ₦2.55 trillion in taxes within the first half of that year. Similarly, in September 2025, the Special Adviser on Tax Policy to the Chairman of the Tax Reforms Committee, Mr. Mathew Osanekwu, disclosed that Nigeria had collected over ₦600 billion in VAT from global digital service providers such as Facebook, Amazon, and Netflix.
According to Osanekwu, amendments to the VAT Act have empowered the FIRS to bring foreign companies into the tax net. He noted that although these are not Nigerian entities, they are now paying VAT under Section 10 of the VAT Act and have been appointed as agents of collection. He added that the policy aligns with global best practices, allowing Nigeria to earn revenue from digital services consumed locally but delivered by foreign firms.
OpenAI’s decision to comply with Nigeria’s VAT regulations underscores the growing importance of the country’s digital market and the government’s determination to ensure that international tech companies operating within its jurisdiction contribute appropriately to national development.
However, the price increase could have ripple effects across Nigeria’s expanding technology and innovation ecosystem. Developers, startups, and creative professionals who depend on ChatGPT and similar AI tools may experience an increase in expenses. Industry observers note that while the adjustment may strain users financially, it could also enhance transparency in the digital economy and strengthen Nigeria’s fiscal framework.
Experts have advised that the government reinvest the revenue generated from digital VAT collections into improving internet infrastructure, supporting innovation, and creating an enabling environment for the country’s growing tech industry.
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ChatGPT Users in Nigeria to Pay more as Open AI introduces 7.5% VAT from November
ChatGPT users in Nigeria will pay more for their subscriptions beginning November 1, 2025, as OpenAI, the American artificial intelligence company behind the popular
