A young Nigerian woman has sparked widespread online discussion after revealing the staggering amount of Value Added Tax (VAT) and consumption tax added to her restaurant bill in early 2026.
Viral TikTok Video Details Hefty Tax Charge
The lady, who shared her experience on TikTok under the handle @auc_empire, visited the popular Ile Iyan restaurant. After dining, she was presented with a bill that left her in shock. The total cost of the food for her table came to N181,000. However, the restaurant staff instructed her to pay N203,000.
When she demanded an explanation for the extra N22,000, she was given a breakdown. The restaurant stated that a 13.5% VAT on N181,000 amounted to N13,575. Additionally, a consumption tax of N9,000 was applied. Combined, these taxes added N23,575 to the original bill, rounding the total to N203,000.
In her emotional video posted on January 7, 2026, she lamented, "Omoh, this 2026, I no wan understand this government policy... How? Shey na like this we want spend 2026?" Her post included a photo of the receipt as evidence.
Mixed Public Reactions and Claims of Long-Standing Practice
The video triggered a flood of reactions from Nigerians online. Many commenters were divided on the issue.
Some users accused the restaurant of exploitation. One user, ARA2, claimed, "No more tax on food, they cheated you guys. The restaurant committee fraud by charging you VAT." Another, tosynmay@674, called the establishment a "fraud."
However, several others pointed out that such charges are not new. Users like HON.AJOBI AYOMIDE Z and OLALEKANBELLO2 stated that Ile Iyan and other high-end restaurants in Lagos have been applying consumption tax for years, long before the recent tax policy discussions. They clarified that consumption tax is typically charged for dining in, not for takeaway orders.
User Slay with Lafindara explained, "Consumption tax is a tax removed cos u eating there, if you buy take away they won’t remove consumption tax ooo…This one no be recent and not cos of govt policy." Another user, Aimasiko1, advised the lady to consult a tax consultant for proper enlightenment.
Broader Context of Nigeria's 2026 Tax Reforms
This incident comes amid national conversations about tax reforms spearheaded by the Taiwo Oyedele-led Tax Reform Committee. While the lady attributed the charges to new government policy, many online commentators distinguished between existing restaurant practices and the newly implemented national tax laws.
The public's heightened sensitivity to deductions follows the official rollout of revised tax regulations in 2026. In a related report, a Nigerian man shared his experience at a market under the new law, while a separate lady cried out over a N50 deduction from a N16,000 bank transfer.
The viral story underscores the confusion and frustration among citizens and businesses as they navigate the evolving fiscal landscape. It highlights the need for clearer public communication regarding what constitutes mandatory government taxes versus discretionary charges by service providers.
