OpenAI has announced that it will begin applying a 7.5% value-added tax (VAT) to all its paid services for users in Nigeria starting November 1, 2025.
The new tax policy will affect subscriptions such as ChatGPT Plus and other billable OpenAI offerings.
In an email to Nigerian users, the company explained that the adjustment aligns with Section 10 of the Value Added Tax Act (as amended) and the FIRS Information Circular 2021/19, which require foreign digital service providers to charge and remit VAT.
OpenAI advised subscribers to add a valid Tax Identification Number (TIN) to their payment settings for accurate tax documentation.
This comes as Nigeria intensifies efforts to ensure tax compliance among global tech firms operating in its digital economy.
Similar policies have already been adopted by companies like Google, Netflix, Amazon, and Meta, which now include VAT in their charges to Nigerian users. Reports indicate that the Federal Inland Revenue Service has already collected nearly ₦600 billion in VAT from foreign digital firms.
For ChatGPT Plus subscribers, the new tax means monthly payments will rise from ₦31,500 (about US$20) to ₦33,862.50 (about US$22.43). However, OpenAI has introduced a lower-cost subscription tier of ₦7,000 per month to cushion the impact on Nigerian users.
The change could also ripple across Nigeria’s tech ecosystem, with local AI-driven startups like Decide and ChatATP expected to face higher operational costs due to the tax.
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