diff --git a/iiod/init/iiod.service.cmakein b/iiod/init/iiod.service.cmakein
index f9c664311..d9cc780a2 100644
--- a/iiod/init/iiod.service.cmakein
+++ b/iiod/init/iiod.service.cmakein
@@ -12,7 +12,7 @@ After=network.target systemd-udev-settle.service
 Documentation=man:iiod(8)
 
 [Service]
-Environment=$IIOD_EXTRA_OPTS=''
+Environment=IIOD_EXTRA_OPTS=''
 EnvironmentFile=-/etc/default/iiod
 ExecStart=@CMAKE_INSTALL_FULL_SBINDIR@/iiod $IIOD_EXTRA_OPTS
 KillMode=process