President Bola Tinubu has permanently abolished the controversial 5% excise duty on telecommunications services, a landmark decision aimed at reducing financial pressure on Nigerian consumers and businesses.
The announcement was made by Aminu Maida, Executive Vice-Chairman of the Nigerian Communications Commission (NCC), during a media briefing in Abuja on Tuesday.
Maida confirmed that the excise levy, initially suspended in 2023, is now officially removed under revised national tax laws. “The 5% excise duty is no longer in effect,” he stated, adding that the President emphasized, “No, we cannot place this burden on Nigerians,” signaling strong government support for digital accessibility.
The excise duty, which applied to mobile voice and data services, had faced criticism from industry stakeholders and consumer groups. Critics warned that the tax could increase the cost of digital access and threaten telecom operators already struggling with high operational costs.
President Tinubu first suspended the levy in July 2023 as part of broader fiscal reforms to ease multiple tax burdens on households and businesses. However, the issue resurfaced in October 2024 when the National Assembly proposed reinstating it, alongside new levies on gaming, betting, and lottery services.
The Association of Telecommunications Companies of Nigeria (ATCON) opposed reinstatement, arguing that the excise duty would undermine service affordability and slow sectoral growth. ATCON highlighted that reliable internet access is increasingly critical to Nigeria’s economy, and removing the tax would encourage digital adoption and business expansion.
By permanently abolishing the 5% excise duty, the government has not only eased costs for consumers but also reinforced Nigeria’s commitment to a thriving digital economy. Analysts suggest that the move could boost mobile data consumption, stimulate investment, and support long-term sector growth.