PRESIDENT Bola Tinubu has officially scrapped the contentious 5% excise duty on telecommunications services, a levy that had long drawn criticism from industry stakeholders and consumer groups.
The announcement was made in Abuja yesterday by the Executive Vice-Chairman of the Nigerian Communications Commission (NCC), Aminu Maida, who confirmed that the duty—previously suspended in 2023—has now been permanently removed under Nigeria’s revised tax framework.
“The 5% excise duty is no longer in effect,” Maida said. “Initially, it was only suspended, but the President insisted it must be completely abolished, stressing that Nigerians should not bear such a burden.”
The tax, which applied to mobile voice and data services, had faced widespread backlash amid concerns that it would inflate the cost of digital access and threaten the survival of telecom operators already struggling with rising operational expenses.
Tinubu first suspended the duty in July 2023 through a series of executive orders designed to reduce multiple taxation on businesses and households.
However, debate resurfaced in October 2024 when lawmakers proposed reviving the tax as part of broader revenue measures, which also included levies on gaming and betting services.
The telecommunications industry, led by the Association of Telecommunications Companies of Nigeria (ATCON), strongly opposed the proposal, warning that reinstating the excise duty would stifle sectoral growth and undermine efforts to expand affordable internet access—a critical driver of Nigeria’s digital economy.
With yesterday’s decision, the levy has now been permanently struck out of national tax laws, signaling the administration’s commitment to easing cost pressures on consumers while supporting the growth of the telecoms sector.