President Bola Tinubu has officially abolished the controversial 5% excise duty on telecommunications services in Nigeria.
The decision, announced Tuesday, August 19, in Abuja, is designed to ease financial pressure on both consumers and operators in the nation’s fast-growing digital economy.
The Executive Vice-Chairman of the Nigerian Communications Commission (NCC), Aminu Maida, confirmed the development during a media briefing.
He revealed that the tax, initially suspended in 2023, has now been permanently scrapped under Nigeria’s updated tax laws.
“The 5% excise duty is no longer in effect,” Maida stated. “At first, it was suspended. But the President has now ordered its removal. I was present when the matter came up, and he made it clear—‘No, we cannot place this burden on Nigerians.’ I am glad the new legislation upheld this directive.”
The tax had applied to mobile voice and data services. It sparked heavy backlash from industry players and consumer rights groups, who argued it would raise internet costs, reduce access, and threaten the viability of telecom operators already battling rising expenses.
Why the Duty Was Scrapped
Tinubu first suspended the duty in July 2023, shortly after assuming office.
The move was part of a wider fiscal reform agenda aimed at reducing Nigeria’s multiple tax burdens.
His administration introduced several executive orders to harmonize taxes and ease the weight on both households and businesses.
The issue, however, resurfaced in October 2024 when the National Assembly considered reinstating the tax.
Lawmakers included it in a package of revenue measures targeting sectors such as gaming, betting, and lotteries. But the telecom sector resisted strongly.
The Association of Telecommunications Companies of Nigeria (ATCON) argued that reinstating the tax would harm affordability and slow down sector growth.
The body stressed that internet access has become a lifeline for Nigeria’s economy, supporting everything from education to financial inclusion.
Impact on Consumers and Businesses
With the abolition of the 5% telecom excise duty, millions of Nigerians could see relief in the cost of calls and data.
Telecom operators, already grappling with rising fuel prices, foreign exchange challenges, and infrastructure costs, will also benefit.
Digital experts say the move could encourage further investment in Nigeria’s digital economy.
Lower costs are expected to boost internet penetration, strengthen e-commerce, and drive innovation across fintech, logistics, and entertainment industries.
What Comes Next
Policy analysts believe the permanent removal of the excise duty signals a stronger push by Tinubu’s government to reposition Nigeria as Africa’s leading digital hub.
However, they warn that the administration must balance revenue generation with consumer protection to sustain growth.
By scrapping the telecom tax, Tinubu has sent a clear message: his government favors economic growth over revenue policies that stifle access.
The challenge ahead will be ensuring that savings are passed down to end-users and not eroded by inflation or operational inefficiencies.