President Bola Tinubu has permanently removed the controversial 5% excise duty on telecommunications services, a levy that had sparked widespread criticism from industry players and consumer groups.
The confirmation came on Tuesday from the Executive Vice-Chairman of the Nigerian Communications Commission (NCC), Aminu Maida, during a press briefing in Abuja.
“The 5% excise duty is no longer in effect,” Maida announced. “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.”
The duty, which applied to mobile calls and data usage, was first suspended in July 2023 under Tinubu’s fiscal reforms but remained a contentious issue after lawmakers revisited it in October 2024 as part of new revenue measures, alongside proposed taxes on betting and lottery services.
Telecom, consumers oppose earlier move
Telecom operators and consumer advocates strongly opposed the move, warning it would drive up the cost of digital access and strain a sector already battling high operating costs.
The Association of Telecommunications Companies of Nigeria (ATCON) argued that reinstating the tax would threaten affordability and slow growth, particularly as internet access becomes increasingly critical to economic activity.
Tinubu’s decision to strike out the excise levy marks a permanent policy shift, with the administration signalling its intent to ease the cost of doing business and improve digital inclusion.
