President Bola Tinubu has permanently scrapped the 5% tax on telecommunications services, easing financial pressure on consumers and operators in Nigeria’s digital economy.
The announcement was made in Abuja by Aminu Maida, Executive Vice-Chairman of the Nigerian Communications Commission (NCC), during a media briefing.
He confirmed that the duty, previously suspended in 2023, has now been completely removed through updated national tax legislation.
Maida explained that the levy on mobile voice and data services would no longer apply, stressing that the President was firm in rejecting the burden on Nigerians.
He noted that Tinubu’s decision was upheld in the revised law to provide clarity and stability to the sector.
The duty had initially sparked criticism from telecom operators, industry stakeholders, and consumer advocacy groups.
Many argued it would worsen affordability challenges, drive up the cost of digital access, and add strain to operators already contending with high energy and infrastructure costs.
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Tinubu first suspended the excise duty in July 2023 as part of a broader tax policy reform undertaken at the start of his administration. The suspension was introduced through executive orders that sought to reduce overlapping taxes on businesses and households.
In October 2024, the National Assembly revisited the proposal to reinstate the levy alongside new charges on gaming, betting, and lottery services. The move generated strong pushback across the telecom industry.
The Association of Telecommunications Companies of Nigeria (ATCON) maintained that reintroducing the tax would harm sectoral growth, disrupt affordability, and undermine efforts to expand internet penetration nationwide.
The group stressed that reliable digital access is critical for Nigeria’s economic competitiveness.
“The 5% excise duty is no longer in effect,” Maida reiterated, adding that the decision aligns with government policy to remove barriers to digital inclusion and strengthen industry growth.
