The Federal Government, FG, has reversed its decision to impose a 5% excise tax on telecommunications services, a policy change that is expected to bring financial relief to over 171 million active mobile users.
The tax, which would have applied to voice calls and data, had been a subject of widespread criticism from both the telecom industry and consumer advocacy groups.
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The reversal was announced by the Executive Vice Chairman of the Nigerian Communications Commission (NCC), Aminu Maida.
He stated that President Bola Tinubu directed the removal of the tax during recent deliberations on the new Finance Act.
The tax, introduced during the Muhammadu Buhari administration, was intended to generate revenue for the government but was met with significant public backlash.
Industry experts and consumer advocates argued that the additional levy would have further burdened Nigerians, many of whom are already grappling with a 50% increase in telecom tariffs implemented earlier this year.
The decision to scrap the tax is a welcome development for millions of Nigerians who rely heavily on telecommunications services for business, education, and social connectivity.
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The move is seen as a responsive action by the new administration to address the concerns of its citizens and ease the economic pressures they face.
