The Federal Government has scrapped the 5% excise duty tax previously imposed on telecommunications services, including voice calls and data usage.
The National Orientation Agency made this known in a post via its official X (formerly Twitter) page on Thursday.
Aminu Maida, Executive Vice Chairman of the Nigerian Communications Commission (NCC), disclosed that President Bola Tinubu ordered the revocation of the levy during discussions on the recently passed Finance Act. “The directive came directly from President Tinubu to ensure that Nigerians are not further burdened at a time of economic pressure,” Maida disclosed in the release.
The NCC boss noted that the move is expected to ease cost pressures for millions of mobile users in the country.
Maida added that the President’s intervention was aimed at preventing additional financial strain on citizens while supporting the 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% tariff increase implemented earlier this year,” he added.
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The 5% excise duty was first announced in 2022 had faced widespread criticism from both telecom operators and consumer rights groups, who warned it would worsen the financial burden on Nigerians amid rising living costs.
The government’s justification then was part of its effort to boost revenue generation amidst dwindling oil earnings.
The Ministry of Finance at the time argued that the levy was in line with global taxation practices.
Telecom operators, under the umbrella of the Association of Licensed Telecom Operators of Nigeria, however, warned that the policy would be counterproductive.
The ALTON noted that Nigeria already had one of the highest tax burdens on the telecommunications sector in sub-Saharan Africa.