The Federal Government has abolished the 5% excise duty on telecommunications services, reversing a policy that had added to the financial strain of millions of Nigerians.
Executive Vice Chairman of the Nigerian Communications Commission (NCC), Aminu Maida, confirmed the development, saying President Bola Tinubu ordered the removal of the levy during discussions on the Finance Act.
“President Tinubu directed the removal of the 5% excise duty on telecommunications services,” Maida said.
The move is expected to bring relief to over 171 million active telecom subscribers across the country, who have also been contending with a 50% tariff increase approved by the NCC in January.
The excise tax, introduced in 2022 under the Buhari administration, applied to both voice and data services. Operators had strongly opposed it, warning that it would further burden an industry already grappling with 39 different levies, a 7.5% VAT, a 2% annual contribution to the NCC, and soaring operational costs.
The Association of Licensed Telecom Operators of Nigeria (ALTON) argued that the levy would inevitably be passed on to subscribers, raising the effective tax burden on telecom services to 12.5%.
Analysts say the scrapping of the excise duty could ease consumer costs, though the recent tariff hike and inflationary pressures continue to weigh heavily on households.
