In a major policy shift, President Bola Tinubu has permanently scrapped the controversial 5% excise duty on telecommunications services, a levy that had long drawn criticism from industry players and consumer rights advocates.
The announcement was confirmed on Tuesday by the Executive Vice-Chairman of the Nigerian Communications Commission (NCC), Aminu Maida, during a media briefing in Abuja.
“The 5% excise duty is no longer in effect,” Maida declared. “At first, it was only suspended, but the President has now completely removed it. I was present when the matter came up, and he firmly said, ‘No, we cannot place this burden on Nigerians.’ I was pleased to see that this directive was upheld in the new tax legislation.”
Relief for Consumers and Industry
The scrapped levy, which had been imposed on mobile voice and data services, was widely unpopular as it threatened to push up the cost of digital access while telecom operators already struggled with rising operational costs.
President Tinubu initially suspended the tax in July 2023, shortly after assuming office, through executive orders designed to reduce multiple taxation and create breathing space for businesses and households.
However, the issue resurfaced in October 2024, when the National Assembly proposed reviving the levy as part of a package of revenue-generating measures that also included new taxes on gaming, betting, and lottery services.
The proposal sparked stiff resistance from telecom stakeholders. The Association of Telecommunications Companies of Nigeria (ATCON) warned that reinstating the tax would undermine affordability, widen the digital divide, and stifle growth in a sector critical to Nigeria’s economic competitiveness.
With Tinubu’s latest move, the tax has now been permanently struck out, offering relief to consumers and signaling renewed government commitment to fostering digital inclusion and expanding access to affordable internet services.
