The Federal Government has officially revoked the 5% excise duty tax imposed on telecommunications services, covering both voice calls and data usage, a move aimed at alleviating the financial burden on millions of Nigerians.
In a statement released on Thursday, the National Orientation Agency confirmed that the Executive Vice Chairman of the Nigerian Communications Commission (NCC), Dr. Aminu Maida, disclosed that the decision followed President Bola Tinubu’s intervention during discussions on the recently passed Finance Act. Dr. Maida explained that the President’s directive was focused on easing the cost pressures faced by telecom users, particularly in light of rising living costs.
“This move is expected to provide relief to over 171 million active telecom users across Nigeria, many of whom have already been impacted by a 50% increase in tariffs earlier this year,” Dr. Maida said. He added that the President’s action would prevent further financial strain on the nation’s citizens while supporting the growth of the country’s digital economy.
The excise duty tax, which was first introduced in 2022 under former President Muhammadu Buhari’s administration, had been met with significant opposition. Telecom operators and consumer rights groups criticised the tax, arguing that it would exacerbate the already challenging economic conditions faced by Nigerians.
The government had initially justified the tax as a measure to boost national revenue in the face of declining oil earnings. However, the tax faced widespread backlash, with the Association of Licensed Telecom Operators of Nigeria (ALTON) warning that the policy would be counterproductive. ALTON highlighted that Nigeria already had one of the highest tax burdens on the telecommunications sector in sub-Saharan Africa.
