By Jemimah Wellington, JKNewsMedia Correspondent
TELECOM OPERATORS and consumers will no longer bear the cost of the 5 per cent excise duty previously applied to voice and data services in Nigeria, following President Bola Tinubu’s decision to abolish the levy under the country’s revised tax laws.
The announcement was made by the Executive Vice-Chairman of the Nigerian Communications Commission (NCC), Aminu Maida, during a media briefing in Abuja.
He confirmed that the excise duty, initially suspended in 2023, has now been permanently removed.
“The 5% excise duty is no longer in effect,” Maida said. “Initially, it was only 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.’ I was very pleased to see that this directive was upheld in the new legislation.”
The levy, which had applied to mobile voice and data services, was first introduced as part of government revenue-generating measures but quickly drew criticism from consumer groups and industry stakeholders.
They argued the duty would raise the cost of digital access and threaten the sustainability of telecom operators already operating under high financial pressure.
President Tinubu suspended the duty in July 2023 through executive orders issued shortly after assuming office, as part of a broader fiscal policy review aimed at easing multiple tax burdens on households and businesses.
The decision was one of four executive orders signed on 6 July 2023, which sought to reduce the impact of overlapping tax obligations across sectors.
The issue re-emerged in October 2024, when the National Assembly proposed reinstating the 5 per cent levy alongside new charges on gaming, betting, and lottery services as part of wider fiscal measures.
That proposal faced immediate resistance from the telecom industry.
The Association of Telecommunications Companies of Nigeria (ATCON) opposed the reintroduction, stating that additional duties would undermine service affordability and restrict growth in a sector that is critical to the digital economy.
ATCON stressed that reliable and affordable internet services remain essential to economic development, particularly as businesses and households increasingly depend on digital platforms.
Maida emphasised that President Tinubu’s position on the issue remained consistent. He reiterated that the administration considered the levy an unnecessary burden on Nigerians and moved to ensure the legislation reflected this stance.
“The excise duty, it was the 5 per cent or so, that is no longer there,” Maida added. “Before it was suspended, but now the President has been magnanimous to remove it entirely.
“I was in a room when it was raised, and he said, no, we cannot put this on Nigerians. I was very pleased when the bills came out and we saw his words were followed through.
“With the tax permanently abolished, the telecommunications industry expects greater stability in pricing, while consumers will be spared the additional charges that had sparked concerns about accessibility.
“Also, the removal marks the conclusion of a two-year policy debate that placed the spotlight on Nigeria’s digital economy and its role in national growth,” he concludes.
