Our Correspondent
The Federal Government has revoked the 5 per cent excise duty on telecommunications services, covering both voice calls and data usage, in a move aimed at reducing the cost pressures on millions of mobile subscribers.
The National Orientation Agency confirmed the development in a post on its official X (formerly Twitter) account on Thursday, quoting the Executive Vice Chairman of the Nigerian Communications Commission (NCC), Dr Aminu Maida.
According to Maida, President Bola Tinubu ordered the removal of the levy during discussions on the recently passed Finance Act. He explained that the President’s intervention was designed to ease financial strain on citizens while strengthening the nation’s digital economy.
“The development is expected to bring relief to over 171 million active telecom users across the country, many of whom have faced a 50 per cent tariff increase implemented earlier this year,” Maida said.
A controversial levy
The 5 per cent telecom excise duty was first announced in 2022 under former President Muhammadu Buhari’s administration as part of efforts to boost non-oil revenue.
The Ministry of Finance at the time defended the policy, insisting it aligned with global taxation practices. However, the levy drew widespread criticism from telecom operators, consumer rights groups, and economists who warned it would further burden Nigerians already grappling with rising living costs.
Telecom operators, under the Association of Licensed Telecom Operators of Nigeria (ALTON), cautioned that the tax was counterproductive, arguing that Nigeria already had one of the highest telecom tax regimes in sub-Saharan Africa.
What it means
With the revocation, subscribers will no longer pay the additional 5 per cent charge on calls and data, a move expected to provide some relief amid persistent inflationary pressures. Industry watchers also believe it signals a more consumer-friendly approach to taxation in the digital sector