The Federal Government has proposed a new tax bill, aimed at overhauling Nigeria’s tax framework. The legislation, dated October 4, 2024, introduces a 5% excise duty on telecommunications services, gaming, gambling, lotteries, and betting activities.

The bill imposes a 5% excise duty on telecoms services, including postpaid and prepaid services, as well as gaming, gambling, betting, and lottery services. Additionally, it introduces excise duty on currency transactions, specifically the difference between the Central Bank of Nigeria’s rate and the actual transaction rate.

The government seeks to boost non-oil revenue and widen its revenue base, leveraging growth in the telecoms and betting sectors. The bill aims to ensure currency exchanges align with official CBN rates.

This move has sparked mixed reactions, with concerns about increased financial burdens on citizens and potential economic benefits.