The Federal Government has officially removed the 5% excise duty on telecommunications services, a move expected to ease financial pressure on millions of Nigerians who rely on voice and data daily. The decision, confirmed by the Nigerian Communications Commission (NCC), came after President Bola Tinubu directed that the levy be scrapped during discussions on the Finance Act.
Speaking on the policy reversal, NCC’s Executive Vice Chairman, Dr. Aminu Maida, explained that the President’s directive was aimed at reducing the burden on consumers who have faced steep hikes in telecom tariffs this year. The government said the removal would provide relief to Nigeria’s over 171 million active subscribers, many of whom have struggled with higher bills since January.
The controversial 5% excise tax was first introduced in 2022 under the Buhari administration as part of efforts to boost non-oil revenue. It covered both voice and data services, but from the beginning, telecom operators and consumer groups criticized the levy. They argued that it unfairly punished subscribers and worsened operating challenges in a sector already battling with multiple taxes, unreliable electricity, and soaring energy costs.
Industry players such as the Association of Licensed Telecom Operators of Nigeria (ALTON) had warned that the policy would push up the effective tax burden on subscribers to about 12.5%. Operators insisted they could not absorb the cost and would pass it directly to users. With tariff increases already approved earlier this year, such as MTN’s 20GB monthly plan rising from ₦5,500 to ₦7,500—the added levy only deepened consumer frustration.
For many Nigerians, telecom costs have shifted from being a predictable household expense to a growing concern. The removal of the 5% tax is now being seen as a welcome relief, particularly for low- and middle-income earners who have had to cut back on data usage or switch to cheaper plans. While challenges like inflation, high diesel prices, and foreign exchange shortages remain, the latest decision signals a step by government toward balancing fiscal needs with consumer welfare in a struggling economy.
source: nairametrics