President Bola Tinubu has revoked the 5% excise tax on telecommunications services, ending months of uncertainty and easing cost pressures for Nigeria’s 171 million active mobile users.
Why it matters
The tax, initially introduced under Muhammadu Buhari’s administration, had been criticized by industry players and consumer groups as an unnecessary burden on both operators and subscribers.
Its removal could provide relief at a time when telecom tariffs have already jumped by 50% this year.
Details
- The excise tax would have applied to both voice calls and data.
- Though suspended in mid-2023, its future had remained unclear until Tinubu directed its outright removal during discussions on the Finance Act, according to NCC chief Aminu Maida.
- The move aligns with a broader regulatory push to improve affordability and service quality, including stricter service benchmarks and centralized billing oversight.
What they’re saying
- Gbenga Adebayo, head of the Association of Licensed Telecom Operators of Nigeria, welcomed the decision but warned that “hidden levies” must not replace the tax.
- Deolu Ogunbanjo of the National Association of Telecoms Subscribers praised the removal, calling it “a step in the right direction,” and hinted that pending legal action over the tax may now be dropped.
