The Federal Government has officially removed the 5% excise tax on telecommunications services, offering long-awaited relief to Nigeria’s 171 million active subscribers.
The levy, first introduced under former President Muhammadu Buhari, applied to both voice calls and data usage, but was widely criticized for inflating costs in an already strained economy.
According to a press release shared on Thursday by the National Orientation Agency, the decision followed sustained opposition from industry stakeholders and consumer rights advocates.
Many had argued that the tax not only threatened affordability but also posed risks to Nigeria’s expanding digital economy.
Aminu Maida, Executive Vice Chairman of the Nigerian Communications Commission (NCC), confirmed that President Bola Tinubu ordered the revocation while reviewing 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.
The move comes at a critical time for telecom users who earlier this year faced a 50% increase in service tariffs. By scrapping the tax, the government aims to ease costs, expand digital access, and boost consumer confidence in the sector.
Industry experts have welcomed the removal, highlighting its potential to stimulate growth in Nigeria’s fast-rising telecommunications and digital services market. The NCC further assured that it will collaborate with operators to ensure that the benefits are fully transferred to subscribers.