Adeola Olatunji

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Using ChatGPT or thinking about upgrading? Then you should know that things are changing. If you are on the paid version of ChatGPT here in Nigeria, you will soon be paying a little more. Do not panic, but do pull up your billing settings.&nbsp;

OpenAI, the company behind the world’s most popular AI chatbot, has just announced that Nigerian users of its paid version, ChatGPT Plus, will soon start paying more. The reason? A new 7.5% Value Added Tax (VAT) will now be applied to all paid OpenAI services in the country. Somehow, VAT has found its way to artificial intelligence.

Starting 1 November 2025, OpenAI will begin collecting VAT on all its billable products for users based in Nigeria. That means anyone subscribed to ChatGPT Plus (the premium plan that costs around ₦31,500 or $20 a month) will soon pay a bit extra, which amounts to roughly ₦33,862.50 after tax.

The company announced this in emails sent to users earlier in October, informing them of the new billing adjustment and requesting that they update their payment details to include their Tax Identification Number (TIN).&nbsp;

This step aligns with Nigeria’s existing VAT regulations for digital services, a rule that has slowly become the norm for international tech companies operating in the country.

For context, OpenAI is not the first to make this move. Netflix, Google, Apple, Amazon, and Meta, owners of Facebook, WhatsApp, and Instagram, have all started collecting VAT from Nigerian users over the past few years. OpenAI is just the newest member to join the group.

This might sound strange and have you thinking: why would a government tax a chatbot? But in reality, this is part of a global trend. Many countries are tightening tax laws around digital products and services, especially those offered by foreign companies.

Under Nigeria’s Value Added Tax Act (amended), foreign service providers who sell to Nigerian users are required to collect VAT on behalf of the Federal Inland Revenue Service (FIRS). Section 10 of that Act explicitly mentions “electronic, digital, and remote services.”

So if a product is being used in Nigeria, it is therefore taxable, whether it is Netflix, Apple Music, or ChatGPT. The current VAT rate in Nigeria is 7.5%, and that is the extra charge that will now appear on every paid OpenAI subscription.

According to tax experts, this move is not just about making users pay more. Instead, it is about ensuring a level playing field between local and foreign companies. Nigerian businesses have long been required to remit VAT on sales within the country, and the government is simply extending that same rule to international players who profit from Nigerian users.

The good news is that free ChatGPT users won’t feel a thing. You can continue using the free version without any changes. But if you are on ChatGPT Plus or plan to upgrade for faster speed, access to GPT-4, and priority usage, you will start seeing a slightly higher monthly bill.

For creators, freelancers, and students who rely on ChatGPT for writing, brainstorming, or even coding, this may feel like yet another item on Nigeria’s long list of “new things to budget for.” It might not seem like much, but with the naira’s instability and the rising cost of living, every extra kobo counts for many Nigerians.

But by charging VAT, OpenAI becomes officially compliant with Nigerian tax laws, which means cleaner invoices, proper receipts, and better transparency for users who might need documentation for business expenses. For registered business owners or freelancers with a TIN, this could even simplify bookkeeping.

The VAT on ChatGPT is not just a financial adjustment; it is a sign of where the digital world is heading. Governments across Africa and beyond are beginning to treat digital services the same way they treat physical goods.

For years, foreign tech companies have made millions, and even billions, in local markets without paying direct taxes. As digital tools become central to everyday life—from content creation to remote work—countries like Nigeria are saying, “It’s time to contribute.”

If you are subscribed to ChatGPT Plus, here’s what you should know:

<ul><li>You do not need to resubscribe; the VAT will be automatically added to your next payment. </li><li>Check your billing email or payment settings for a breakdown of your updated cost. </li><li>If you are registered as a business or freelancer, include your Tax Identification Number (TIN) in your OpenAI billing information to keep your records accurate. </li><li>VAT is not retroactive, so it only applies from the date the change takes effect.</li></ul>

For casual users, it is important to consider whether the paid version is worth the investment. The Plus plan provides smoother access and enhanced performance during peak hours, which can be beneficial. However, if you only use ChatGPT occasionally for quick prompts or casual conversations, the free version may still meet your needs perfectly.

And if you are one of those who swear by AI for work, creativity, or research, you might want to consider updating your billing information to maintain access to this tool that has become our digital best friend.

OpenAI’s AI tool, ChatGPT, is getting pricier for Nigerian users and it’s not just inflation. Here’s what’s behind the sudden hike in cost.

ChatGPT Will Now Cost More for Nigerians — Here’s Why

Segun Adeyemi

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President Bola Tinubu has called on the media to support his administration’s proposed tax reforms, describing them as a pivotal measure for building enduring national prosperity.

Speaking through the Minister of Information and National Orientation, Mohammed Idris, at the 2024 Nigerian Media Merit Awards (NNMA) in Lagos, Tinubu emphasised the critical role of accurate reporting in fostering public understanding of the reforms.

“Our policies are deliberate and well-thought-out. Among our landmark reforms is tax restructuring—a profound step toward setting Nigeria on the path of enduring wealth and inclusive growth,” Tinubu stated.

Acknowledging differences in opinion on the reforms’ specifics, he highlighted a national consensus on the need for a comprehensive overhaul of the tax system.

The President explained that the proposed tax bills aim to reduce the number of taxes, alleviate burdens on vulnerable Nigerians, and boost state revenues while incentivising business growth.

He noted that these measures align with the administration’s Renewed Hope Agenda, which also includes subsidy removal and exchange rate unification.

Tinubu celebrated recent fiscal milestones, citing the Federation Accounts Allocation Committee’s highest-ever revenue distribution.

“These freed resources are financing critical initiatives, including the consumer credit scheme, student loan fund, MSME clinics, and massive road infrastructure projects,” he said.

Beyond tax reforms, Tinubu reaffirmed his commitment to press freedom, urging journalists to responsibly counter misinformation in the digital age.

“Media freedom must be exercised responsibly, especially in an era where falsehoods often go viral,” he remarked.

To combat misinformation, the President announced the establishment of the UNESCO Media and Information Literacy Institute at the National Open University of Nigeria, aimed at equipping Nigerians with skills to identify credible information.

Tinubu commended Nigerian journalists for their contributions to democracy, congratulating the NNMA winners and pledging continued support for press rights.

“A protected media and civic space are vital to our democracy,” he concluded.

President Bola Ahmed Tinubu. [Getty Images]

Tinubu commended Nigerian journalists for their contributions to democracy, congratulating the NNMA winners and pledging continued support for press rights.

Why media should back tax reforms - President Tinubu

<h2>Shehu Sani, a former senator representing Kaduna Central, has clarified that President Bola Tinubu's Tax Reform Bill, recently presented to the National Assembly, does not discriminate against the North.</h2>

Addressing concerns over the bill's potential impact, Sani urged both Northern leaders and citizens to “move beyond sentiments and look at the benefits” of the proposed legislation.

In a statement, Sani expressed his belief that Tinubu’s bill is “economically beneficial and fair to all parts” of Nigeria.

He described it as a comprehensive effort to “harmonise and simplify tax administration,” while <a data-link-role-code="open_new_tab" href="https://www.pulse.ng/news/local/how-tinubus-tax-reform-bill-set-to-boost-economic-growth/mltz7q1">streamlining enforcement to enhance revenue generation.</a>

READ ALSO: <a href="https://www.pulse.ng/news/local/senator-ndume-faces-backlash-for-challenging-tinubus-tax-reform-bill/xcxsm7e">Senator Ndume suffers backlash for opposing Tinubu's 'Tax Reform Bill'</a>

“The Tax Reform Bill is not inimical to the North or any part of this country. People should keep aside sentiments and read the Bill carefully. It’s a comprehensive and bold move to harmonise and simplify tax administration… combat corruption in the so-called tax waivers granted to business cabals,” he stated.

Sani addressed <a data-link-role-code="open_new_tab" href="https://www.pulse.ng/news/northern-govs-rebel-against-tinubu-reject-tax-reform-bill/7xjxz1f">Northern governors </a>directly, urging them to “rescind their decision to reject the Bill and take time to read it.”

He emphasised that no region will be shortchanged, nor will there be job losses or increased taxes. Instead, Sani assured that the reforms would safeguard national and state revenues.

He concluded by calling on the National Assembly to treat the bill with urgency, underscoring its importance to Nigeria’s economic future.

<h3>Arewa group rallies support for Tinubu's tax reforms</h3>

Meanwhile, the Coalition of Arewa Groups, comprising 300 organisations from 19 northern states, has declared its support for President Bola Tinubu's tax reform bill, urging the National Assembly to expedite its passage.

The Coalition praised President Tinubu's vision, emphasising the bill's potential to restructure Nigeria's tax framework and drive sustainable economic growth.

“Our endorsement is premised on the understanding that the tax bills are designed to consolidate taxation frameworks, promote economic growth, and ensure sustainability,” said Alhaji Usman Abubakar and Obadiah Amos, co-signatories of the group's statement.

The group also commended Federal Inland Revenue Service (FIRS) Chairman Zacch Adedeji for enhancing public understanding of the bill through media engagements, stating, “We pass a vote of confidence in the FIRS Chairman and express our full support for President Tinubu’s tax bills.”

Reaffirming its stance, the Coalition called on lawmakers to ensure the bill’s timely implementation, noting that transparency in pricing and publishing costs could further strengthen Nigeria's tax system.

Shehu Sani, a former senator representing Kaduna Central, has clarified that President Bola Tinubu's Tax Reform Bill, recently presented to the National Assembly, does not discriminate against the North.

Is Tinubu's 'Tax Reform Bill' anti-North? Shehu Sani clarifies

<h2>Senator Ali Ndume, representing Borno South in the National Assembly, faces harsh criticism from the Northern Redemption Coalition (NRC) over his opposition to President Bola Tinubu's proposed tax reform bills. </h2>

Ndume, who labelled the bills “dead on arrival” during an appearance on Channels Television’s Politics Today, <a data-link-role-code="open_new_tab" href="https://www.pulse.ng/news/local/senator-ndume-vows-to-campaign-against-tinubus-proposed-tax-bill/pevdjv1">called for their rejection by the National Assembly,</a> sparking strong backlash from northern stakeholders.

The tax reform package, sent to the National Assembly by President Tinubu, includes four bills: the Nigeria Tax Bill 2024, the Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill. This legislative package is designed to replace the Federal Inland Revenue Service (FIRS) with the Nigeria Revenue Service (NRS) and aims to streamline tax collection nationwide.

The Northern Governors Forum (NGF) had already<a data-link-role-code="open_new_tab" href="https://www.pulse.ng/news/northern-govs-rebel-against-tinubu-reject-tax-reform-bill/7xjxz1f"> voiced opposition to the VAT-related changes,</a> fearing economic strain on northern states, a position some groups have also condemned.

READ ALSO: <a href="https://www.pulse.ng/news/local/19-northern-govs-told-to-embrace-tinubus-tax-reform-bill/sw2456q">Northern govs told to embrace Tinubu's 'Tax Reform Bill'</a>

The NRC, however, was quick to distance itself from Ndume's comments. NRC President Comrade Adamu Bashir accused Ndume of self-serving populism that does not represent the interests of northern constituents.

“It is the failure of leaders like Ndume to develop the North that has left them with the phobia for tax bills, which President Tinubu has demonstrated, can turn the economy around,” Bashir stated.

READ ALSO: <a href="https://www.pulse.ng/news/gov-sule-reacts-to-north-rejecting-tinubus-tax-reform-bill/ly3h05e">'We made him president' - Gov Sule reacts to North rejecting Tinubu's 'Tax Bill'</a>

Bashir argued that Ndume’s long tenure in the Senate has yielded little progress for his constituents, suggesting he was disconnected from the reality faced by ordinary northern citizens.

“While he claimed to be speaking for the poor in the country, it turned out he cannot even speak for the North, and certainly, he appears disconnected from his constituency,” Bashir remarked, adding that Ndume’s stance reinforces “the wrong notion of a lazy and entitled North.”

The NRC president further cautioned that northern Nigerians do not fear new tax reforms but rather fear ineffective leadership.

“The North fears leaders like Ndume and our governors, who have refused to distribute wealth evenly,” he said.

Senator Ali Ndume, representing Borno South in the National Assembly, faces harsh criticism from the Northern Redemption Coalition (NRC) over his opposition to President Bola Tinubu's proposed tax reform bills

Senator Ndume suffers backlash for opposing Tinubu's 'Tax Reform Bill'

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