The Federal Government has officially revoked the 5% excise duty on telecommunications services, a levy that previously applied to voice calls and data subscriptions.
The National Orientation Agency confirmed the policy reversal in a statement released on its official X (formerly Twitter) handle on Thursday. According to the agency, the Executive Vice Chairman of the Nigerian Communications Commission (NCC), Dr. Aminu Maida, announced that President Bola Tinubu directed the removal of the tax during deliberations on the recently enacted Finance Act.
Maida emphasized that the President’s decision was designed to ease financial pressures on millions of mobile subscribers across the country while advancing Nigeria’s digital economy.
“This intervention is expected to bring relief to over 171 million active telecom users nationwide, many of whom have already faced steep tariff hikes of up to 50% earlier in the year,” the NCC chief explained.
The excise duty, introduced under former President Muhammadu Buhari in 2022, had sparked widespread criticism from both operators and consumer advocates. Industry stakeholders, led by the Association of Licensed Telecom Operators of Nigeria (ALTON), warned that the levy would stifle growth in the sector and further burden consumers struggling with inflation and high living costs.
At the time, the Ministry of Finance defended the tax as part of broader efforts to diversify government revenues amid declining oil receipts, arguing that such levies aligned with international best practices.
With the latest revocation, operators and consumers alike expect a reduction in cost pressures across the telecom industry, a move analysts say could stimulate higher usage and investment in broadband infrastructure.
