By John Umeh
The Federal Government has officially abolished the 5% excise duty on telecommunications services, a levy that had applied to both voice calls and data subscriptions.
The announcement was made public by the National Orientation Agency through its official X (formerly Twitter) account on Thursday. According to the agency, the Executive Vice Chairman of the Nigerian Communications Commission (NCC), Dr. Aminu Maida, revealed that President Bola Ahmed Tinubu ordered the revocation while reviewing the newly signed Finance Act.
Dr. Maida explained that the President’s decision was aimed at protecting Nigerians from additional financial strain, especially at a time when citizens are already grappling with higher living costs. He noted that the removal of the tax is expected to bring relief to more than 171 million active telecom subscribers, many of whom have been hit by a 50% tariff hike earlier in the year.
The 5% duty was originally introduced in 2022 under the administration of former President Muhammadu Buhari, with the justification that it would help boost government revenue as oil earnings declined. However, the tax sparked widespread opposition from telecom operators and consumer rights groups, who argued it would stifle digital growth and deepen the financial burden on Nigerians.
Operators, under the Association of Licensed Telecom Operators of Nigeria (ALTON), repeatedly warned that Nigeria’s telecom sector was already one of the most heavily taxed in sub-Saharan Africa, insisting that the policy was counterproductive.
With this latest reversal, industry stakeholders and consumer advocates believe the government has taken a step in the right direction to promote affordable digital access and strengthen Nigeria’s fast-growing digital economy.
