President Bola Tinubu has permanently abolished the controversial five percent excise duty on telecommunications services, a decision aimed at reducing costs for consumers and supporting the growth of Nigeria’s digital economy.
The announcement was made on Tuesday in Abuja by the Executive Vice-Chairman of the Nigerian Communications Commission (NCC), Aminu Maida, during a media briefing.
Maida explained that the levy, which applied to mobile voice and data services, had initially been suspended in July 2023 but has now been completely removed under the revised national tax laws.
“The 5% excise duty is no longer in effect. Initially, it was suspended, but the President has now completely removed it. I was present when the issue was raised, and he firmly said, ‘No, we cannot place this burden on Nigerians,’” Maida said.
The tax, introduced under the previous administration, drew heavy criticism from industry stakeholders and consumer advocacy groups, who warned that it would drive up the cost of digital access and threaten the financial sustainability of telecom operators already struggling with rising operational costs.
Although the duty was suspended shortly after Tinubu assumed office, the debate resurfaced in October 2024 when the National Assembly proposed its reinstatement as part of new revenue measures. The plan was strongly opposed by the Association of Telecommunications Companies of Nigeria (ATCON), which maintained that the levy would undermine affordability and slow sectoral growth at a time when internet connectivity is increasingly central to Nigeria’s economic activities.
With Tuesday’s announcement, the telecom sector has gained clarity, and industry observers say the decision could stimulate broader investment in digital infrastructure while offering some relief to millions of subscribers nationwide.
