The Federal Government has officially removed the 5% excise duty previously levied on telecommunications services such as voice calls and data usage. This announcement was made by the National Orientation Agency via its official X (formerly Twitter) account on Thursday.
According to the post, the Executive Vice Chairman of the Nigerian Communications Commission (NCC), Dr. Aminu Maida, revealed that President Bola Tinubu directed the tax removal during deliberations on the newly enacted Finance Act.
Dr. Maida explained that the President’s decision is intended to reduce financial pressure on millions of telecom users and support the growth of Nigeria’s digital economy.
“This move is expected to provide relief to over 171 million active telecom subscribers nationwide, many of whom have already been affected by a 50% increase in service tariffs earlier this year,” Maida stated.
NAIJALOG recalls that the 5% excise tax, affecting both voice and data services, was introduced during the administration of former President Muhammadu Buhari in 2022. The policy was met with significant backlash from telecom providers and consumer advocacy groups, who argued it would intensify the economic strain on Nigerians amid rising costs of living.
At the time, the government defended the tax as part of broader efforts to diversify revenue sources due to declining oil income. The Ministry of Finance also claimed the excise duty was aligned with international taxation standards.
However, the Association of Licensed Telecom Operators of Nigeria (ALTON) cautioned that the move would be detrimental, pointing out that Nigeria already had one of the highest telecom tax rates in sub-Saharan Africa.