THE Federal Government has announced the cancellation of the 5% tax previously applied to telecommunications services, including voice calls and data subscriptions.
The National Orientation Agency revealed the development today through its official X (formerly Twitter) account, citing remarks from the Executive Vice Chairman of the Nigerian Communications Commission (NCC), Dr. Aminu Maida.
According to Maida, President Bola Tinubu directed the withdrawal of the tax during discussions on the recently enacted Finance Act.
He explained that the decision was taken to ease financial pressure on citizens while fostering growth in Nigeria’s digital economy.
“This move will provide much-needed relief to over 171 million active telecom subscribers, many of whom have already endured a 50% tariff hike earlier this year,” Maida stated.
The tax, first introduced in 2022 under the administration of late President Muhammadu Buhari, had sparked strong opposition from telecom operators and consumer advocacy groups.
Critics argued that the levy would worsen living costs at a time of economic hardship.
While the previous government defended the duty as part of revenue diversification efforts, operators under the Association of Licensed Telecom Operators of Nigeria (ALTON) warned that the policy would be counterproductive.
They stressed that Nigeria already had one of the heaviest tax burdens on telecommunications in sub-Saharan Africa.