The Federal Government has scrapped the 5% excise tax on telecommunications services, a move expected to ease cost pressures for millions of mobile users across the country.
The announcement was made on Thursday by the National Orientation Agency (NOA) via its official X (formerly Twitter) page.
Relief for Telecom Users
The Executive Vice Chairman of the Nigerian Communications Commission (NCC), Dr. Aminu Maida, confirmed that President Bola Tinubu directed the removal of the levy during deliberations on the recently passed Finance Act.
According to Maida, the President’s intervention was aimed at preventing further financial strain on citizens while supporting Nigeria’s growing digital economy.
“The development is expected to bring relief to over 171 million active telecom users across the country, many of whom have faced a 50% tariff increase implemented earlier this year,” he said.
Background of the Tax
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The 5% excise duty was first introduced in 2022 under former President Muhammadu Buhari.
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It applied to both voice calls and data subscriptions, sparking widespread criticism from telecom operators and consumer rights groups.
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Operators, under the Association of Licensed Telecom Operators of Nigeria (ALTON), argued that Nigeria already had one of the highest telecom tax burdens in sub-Saharan Africa.
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Critics also warned it would worsen the financial burden on Nigerians struggling with rising living costs.
At the time, the Ministry of Finance defended the levy, describing it as consistent with “global taxation practices” and necessary to boost revenue amidst dwindling oil earnings.
What’s Next?
The removal of the tax is being welcomed as a win for consumers and the telecom industry, though analysts say effective monitoring will be key to ensuring that service providers pass on the relief directly to subscribers.
