Tinubu Abolishes 5% Telecom Excise Duty to Reduce Subscriber Costs and Boost Digital Growth
President Bola Tinubu has officially abolished the five per cent excise duty on telecommunications services as part of Nigeria’s new tax reforms. The Executive Vice-Chairman of the Nigerian Communications Commission (NCC), Dr. Aminu Maida, confirmed the development during an interactive session with journalists in Abuja on Tuesday. According to him, the removal of the levy, which was initially suspended in 2023, will provide relief to subscribers and ease cost pressures in the telecom sector.
The scrapped levy was first introduced in 2022 under former President Muhammadu Buhari’s administration but faced widespread opposition from stakeholders who argued it would hurt consumers and limit digital inclusion. Tinubu suspended the duty shortly after assuming office, citing economic concerns, before now removing it completely. Dr. Maida said the decision reflects the President’s commitment to reducing the financial burden on Nigerians while creating room for growth in the telecom industry, which is central to the nation’s digital economy.
Beyond tax reforms, the NCC chief outlined new initiatives to improve transparency and consumer protection in the sector. These include the release of a public map on network performance in September, as well as quarterly reports on internet speed, latency and overall service quality. He explained that the commission was adopting behavioral economics in regulation, ensuring that consumers and operators alike have access to clearer information to make better decisions.
Dr. Maida also highlighted broader reforms such as resolving USSD debt disputes, introducing end-user billing, strengthening corporate governance, and launching a Major Incident Reporting Portal. He stressed that while the telecom policy of 2000 succeeded in breaking monopolies and encouraging competition, Nigeria must now update its framework to reflect new realities like artificial intelligence, the Internet of Things, and augmented reality. Despite recent tariff adjustments, he noted that Nigeria’s call rates remain relatively low compared to the early 2000s.
Addressing consumer complaints, Maida confirmed that the NCC and the Central Bank of Nigeria have developed a framework to standardize recharge processes and engaged top audit firms to review billing systems. Findings revealed no systemic fraud but highlighted issues like background app usage and complex tariff plans. He assured that the NCC’s focus is not punitive but aimed at ensuring consumer satisfaction, operator efficiency, and long-term sector growth. Supporting this, NCC officials urged Nigerians to adopt simple data-saving practices while reaffirming the regulator’s commitment to collaboration with the media and industry stakeholders.
Source: Punch