By Erewunmi Peace

President Bola Ahmed Tinubu has permanently abolished the 5% excise duty on telecommunications services, a move that will provide major relief for millions of Nigerian mobile subscribers.

The decision was confirmed by the Nigerian Communications Commission (NCC) in Abuja, stating that the removal of the levy aligns with President Tinubu’s commitment to reducing the cost of living and promoting affordable digital connectivity.

The 5% telecom tax, which was introduced under the previous administration, had been suspended in 2023 following public outcry and industry pushback. However, the latest directive formally scraps the tax under the newly signed national tax reform laws.

According to the NCC Executive Vice-Chairman, Aminu Maida, the policy shift will ease the financial burden on over 172 million active telecom subscribers in Nigeria.

“The abolition of the telecom levy is a bold step towards ensuring affordable digital services for Nigerians and supporting the growth of the ICT sector,” Maida said.

Industry experts have hailed the development, noting that removing the levy will not only make data and voice services cheaper but also encourage broader internet penetration, digital inclusion, and business growth.

Background

The 5% excise duty on calls and data was introduced as part of the Finance Act 2020 but faced significant opposition from telecom operators and consumer advocacy groups, who warned that the extra tax would increase service costs for Nigerians already struggling with inflation.