President Bola Tinubu has permanently abolished the 5% excise duty on telecommunications services in Nigeria, effective immediately.
This decision aims to reduce financial burdens on consumers and stimulate growth in the country’s digital economy.
According to Aminu Maida, Executive Vice-Chairman of the Nigerian Communications Commission (NCC), the president firmly stated, “No, we cannot place this burden on Nigerians,” when the issue was raised. The directive has now been incorporated into new legislation.
The scrapped levy, which applied to mobile voice and data services, had faced criticism from consumer groups and telecom operators who argued it would increase digital access costs and threaten businesses struggling with rising operational expenses.
Tinubu initially suspended the telecom levy in July 2023 as part of a broader effort to review Nigeria’s tax system and ease multiple levies on businesses and households.
However, the issue resurfaced in October 2024 when the National Assembly proposed reinstating the tax alongside levies on gaming, betting, and lottery services.
This latest decision is expected to improve digital access, strengthen telecom operators, and support Nigeria’s expanding digital economy.
With over 172 million active subscribers, including 141 million internet users and 105 million broadband users, the removal of the duty is likely to have a significant impact on the industry.
