The Federal Government has removed the 5% excise duty previously applied to telecommunications services such as voice calls and data.
This announcement was shared on Thursday by the National Orientation Agency through its official X (formerly Twitter) account.
According to the post, the Executive Vice Chairman of the Nigerian Communications Commission (NCC), Dr. Aminu Maida, revealed that President Bola Tinubu directed the tax removal during talks related to the recently enacted Finance Act.
Dr. Maida explained that this decision is aimed at reducing financial burdens for millions of mobile users across the country.
Maida added that the President’s intervention was aimed at preventing additional financial strain on citizens while supporting the digital economy.
“The development is expected to bring relief to over 171 million active telecom users across the country, many of whom have faced a 50% tariff increase implemented earlier this year,” he added.
According to reports the tax, which applies to both voice calls and data subscriptions, was introduced under the administration of former President Muhammadu Buhari.
The 5% excise duty was first announced in 2022 had faced widespread criticism from both telecom operators and consumer rights groups, who warned it would worsen the financial burden on Nigerians amid rising living costs.
The government’s justification then was part of its effort to boost revenue generation amidst dwindling oil earnings.
The Ministry of Finance at the time argued that the levy was in line with global taxation practices.
Telecom operators, under the umbrella of the Association of Licensed Telecom Operators of Nigeria, however, warned that the policy would be counterproductive.
The ALTON noted that Nigeria already had one of the highest tax burdens on the telecommunications sector in sub-Saharan Africa.