Starting November 1, 2025, Nigerian users of ChatGPT will see an increase in their subscription costs as OpenAI, the company behind the popular artificial intelligence chatbot, begins applying a 7.5% Value Added Tax (VAT) to all its paid services in compliance with Nigerian tax regulations.
The new VAT charge means that subscribers to ChatGPT Plus — previously priced at ₦31,500 ($20) per month — will now pay approximately ₦33,862.50 ($22.43). The adjustment applies to all OpenAI’s billable offerings available to Nigerian customers, including premium and enterprise services.
In a notification sent via email to Nigerian users, OpenAI explained that the decision aligns 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, which mandate foreign digital service providers to collect and remit VAT on transactions involving Nigerian customers.
“From November 1, 2025, a 7.5% VAT will be added to your ChatGPT Plus subscription fee in accordance with Nigerian tax laws,” the company stated. “This ensures compliance with local tax regulations governing non-resident service providers.”
The implementation of VAT on OpenAI’s products follows Nigeria’s growing efforts to expand its digital tax net and ensure that foreign technology companies operating in the country contribute to tax revenues. Since 2022, the FIRS has enforced digital service taxes on global platforms such as Netflix, Google, Meta (Facebook and Instagram), and Spotify.
The move is part of the Federal Government’s broader strategy to increase non-oil revenue by taxing the digital economy — a rapidly expanding sector with millions of Nigerian users.
While some users have expressed concern over the increased subscription cost amid Nigeria’s rising inflation and weakening currency, analysts note that the price adjustment is a reflection of global compliance trends as more countries move to tax cross-border digital services.
With this change, OpenAI joins the growing list of international tech companies adhering to Nigeria’s VAT framework, reinforcing the government’s resolve to regulate and capture value from the booming digital economy.
