Starting November 1, 2025, OpenAI will implement Nigeria’s 7.5% Value-Added Tax (VAT) on all its paid services, including ChatGPT Plus, Team, and Enterprise plans, in compliance with federal tax regulations. The move, announced today, is set to increase subscription costs for Nigerian users, with the popular ChatGPT Plus plan potentially rising from approximately ₦20,000 to ₦33,862 per month. To cushion the impact, OpenAI has introduced a new, budget-friendly “Go” plan priced at ₦7,000 per month, aimed at broadening access to its AI tools in Nigeria’s rapidly growing tech ecosystem.
The VAT imposition reflects Nigeria’s push to enforce digital taxation as the country cements its position as a leading AI hub in Sub-Saharan Africa. With the Federal Inland Revenue Service (FIRS) tightening regulations on global tech companies, OpenAI’s decision aligns with similar moves by platforms like Google and Meta, which have also integrated VAT into their Nigerian pricing structures. However, the tax hike has sparked lively debates online, with users on X humorously dubbing it “AI wahala” and expressing concerns about affordability for students, startups, and small businesses.
“Nigeria’s tech scene is booming, but this VAT could slow down adoption for everyday users,” said Temi Adebayo, a Lagos-based AI developer. “The Go plan is a smart move, but it needs to pack enough value to compete with free tools flooding the market.”
The ChatGPT Go plan, tailored for cost-conscious markets like Nigeria, offers access to core AI features with reduced usage quotas compared to premium tiers. While OpenAI has not disclosed specific limits, sources suggest it will support basic tasks like content creation, coding assistance, and data analysis key needs for Nigeria’s youth-driven workforce. The move comes as Nigeria ranks second in Africa for AI specialists and leads the continent in AI startup funding, according to a recent BCG report.
Industry analysts see the Go plan as a strategic play to capture Nigeria’s burgeoning creator economy, where over 70% of the population is under 30 and increasingly reliant on digital tools. “OpenAI is betting on Nigeria’s potential as an AI powerhouse,” said Dr. Funmi Ogunleye, a tech policy expert at the University of Lagos. “But affordability is critical. The Go plan could democratize AI access, especially for students and small-scale entrepreneurs.”
Social media reactions on X today highlight a mix of optimism and skepticism. One user, @TechNaija, posted, “₦7,000 for ChatGPT Go? Sounds fair, but let’s see the fine print. Free tools like Grok are still out there.” Others raised concerns about the broader impact of digital taxation on Nigeria’s tech ecosystem, which is projected to grow at 27% annually through 2030, per Bloomberg.
The VAT implementation also underscores Nigeria’s efforts to regulate its digital economy, with the National Information Technology Development Agency (NITDA) emphasizing compliance from global tech firms. “This is a step toward fiscal responsibility, but it must be balanced with policies that foster innovation,” NITDA’s Director-General noted at the recent GITEX 2025 summit.
As Nigeria navigates its AI boom, OpenAI’s pricing shift could set a precedent for how global tech giants adapt to local markets. For now, Nigerian users are eyeing the Go plan as a potential game-changer, while bracing for the November 1 price adjustments. Whether the move will accelerate or hinder AI adoption in Africa’s most populous nation remains to be seen. For more details on ChatGPT subscription plans, visit https://openai.com.
