Relief for Nigerians As FG Abolishes 5% Tax on Telecom Services

The Federal Government has scrapped the 5% excise duty tax previously imposed on telecommunications services, including voice calls and data usage.

The National Orientation Agency announced this on its official X (formerly Twitter) page on Thursday. The Executive Vice Chairman of the Nigerian Communications Commission (NCC), Dr. Aminu Maida, revealed that President Bola Tinubu ordered the tax’s removal during discussions on the recently passed Finance Act.

Maida emphasized that this decision is expected to alleviate cost pressures for millions of mobile users across the country. He noted that the President’s intervention aims to prevent additional financial strain on citizens while supporting the digital economy. “This development is expected to bring relief to over 171 million active telecom users in Nigeria, many of whom have faced a 50% tariff increase implemented earlier this year,” he stated.

PUNCH Online reports that the tax, which applied to both voice calls and data subscriptions, was introduced under the administration of former President Muhammadu Buhari. Initially announced in 2022, the tax faced widespread criticism from telecom operators and consumer rights groups, who argued it would exacerbate the financial burden on Nigerians amid rising living costs.

At the time, the government justified the tax as a means to boost revenue generation amidst declining oil earnings, claiming it aligned with global taxation practices. However, telecom operators, represented by the Association of Licensed Telecom Operators of Nigeria (ALTON), warned that the policy would be counterproductive, pointing out that Nigeria already faces one of the highest tax burdens on the telecommunications sector in sub-Saharan Africa.