The Nigerian government has scrapped the 5% excise tax on telecommunications services, a move expected to ease cost pressures for millions of mobile phone users.
The National Orientation Agency confirmed the development Thursday in a statement on X (formerly Twitter), citing the Executive Vice Chairman of the Nigerian Communications Commission (NCC), Dr. Aminu Maida. He disclosed that President Bola Tinubu ordered the tax removal during discussions on the recently passed Finance Act.
Maida explained that the decision was part of the president’s effort to prevent further financial strain on citizens while advancing Nigeria’s digital economy. “The development is expected to bring relief to over 171 million active telecom users across the country, many of whom faced a 50% tariff increase earlier this year,” he noted.
The 5% excise levy, which applied to both calls and data services, was introduced under former President Muhammadu Buhari in 2022. It immediately drew criticism from telecom operators and consumer rights groups, who argued that it would worsen the financial burden on Nigerians already grappling with rising living costs.
At the time, the Ministry of Finance defended the tax as a revenue-boosting measure consistent with global practices. However, the Association of Licensed Telecom Operators of Nigeria (ALTON) warned it would be counterproductive, stressing that the country already had one of the highest telecom tax burdens in sub-Saharan Africa.
