President Bola Tinubu has permanently scrapped the controversial 5% excise duty on telecommunications services, a decision aimed at reducing financial strain on consumers and boosting Nigeria’s digital economy.
The Executive Vice-Chairman of the Nigerian Communications Commission (NCC), Dr. Aminu Maida, announced the development during a media briefing in Abuja.
Maida explained that while the levy was initially suspended in 2023, it has now been fully abolished under the country’s revised tax laws.
“The 5% excise duty is no longer in effect. Initially, it was only suspended, but the President has now completely removed it. I was present when the issue was raised, and he firmly said, ‘No, we cannot place this burden on Nigerians.’ I was very pleased to see that this directive was upheld in the new legislation,” Maida stated.
The levy, which was applied to mobile voice and data services, had triggered widespread opposition from telecom operators, industry groups, and consumer advocates. Critics argued it would raise the cost of digital access, stifle innovation, and worsen the already high operational expenses faced by telecom firms.
President Tinubu first halted the duty in July 2023 as part of his broader fiscal reform agenda designed to streamline taxes and reduce economic burdens on households and businesses. However, the proposal to reinstate it resurfaced in October 2024 when the National Assembly included it among new revenue-boosting measures targeting sectors such as betting, lottery, and gaming.
The move met stiff resistance from stakeholders, with the Association of Telecommunications Companies of Nigeria (ATCON) warning that reintroducing the tax would have crippled affordability and slowed sectoral growth at a time when reliable internet access is crucial for national development.
With its permanent removal now enshrined in law, industry players say the decision strengthens investor confidence and aligns with the government’s push to expand broadband penetration and digital inclusion across Nigeria.
