The news
- Nigeria’s President Bola Tinubu has officially scrapped the proposed 5% levy on telecom, voice, and data services.
- The policy change could slow rising telecom costs for over 172 million users.
- The Nigerian Communications Commission (NCC) says the decision aligns with broader reforms aimed at improving digital access.
President Bola Tinubu has revoked the 5% excise tax previously earmarked for telecommunications services in Nigeria, a move expected to ease cost pressures for millions of mobile users.
The tax, which was meant to be applied to both voice calls and data, had drawn widespread criticism from industry players and consumer advocates since its announcement under the Muhammadu Buhari administration. Though temporarily suspended in mid-2023, its complete removal had remained uncertain until now.
Aminu Maida, Executive Vice Chairman of the Nigerian Communications Commission (NCC), disclosed that President Tinubu directed the tax be eliminated outright during discussions over the recently passed Finance Act.
The development could bring relief to over 171 million active telecom users across the country, many of whom have faced a combination of service frustrations alongside a recent 50 % tariff increase implemented earlier this year.
According to the NCC, this tax cancellation is not an isolated gesture; it comes as part of a broader regulatory push to improve affordability and service standards in Nigeria’s telecom sector. Some of the initiatives underway include plans to centralise billing responsibilities with end-user platforms and enforce stricter service-level benchmarks, particularly for companies operating telecom towers.
Gbenga Adebayo, who leads the Association of Licensed Telecom Operators of Nigeria (ALTON), welcomed the move but advised stakeholders to remain alert. He noted that while the removal eases pressure on both users and operators, care must be taken to ensure that new taxes or hidden levies don’t replace the scrapped duty under a different name.
Meanwhile, Deolu Ogunbanjo, head of the National Association of Telecoms Subscribers (NATCOMs), praised the federal government’s decision, describing it as a step in the right direction. He also hinted that consumer rights groups may now reconsider their legal action over the tax, which had been on hold pending clarity on the policy.
