Tinubu abolishes 5% telecom excise duty, NCC says move to ease burden on Nigerians

The Federal Government has scrapped the five per cent excise duty on telecommunications services, a policy reversal expected to ease cost pressures on millions of subscribers and stimulate growth in Nigeria’s digital economy.

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.

“The excise duty, it was five per cent or so, that is no longer there,” Maida said. “Before, it was suspended, but now the President has been magnanimous to remove it entirely. I was in the 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.”

The controversial levy was first introduced in 2022 under former President Muhammadu Buhari as part of sweeping fiscal reforms.

It immediately sparked backlash from industry stakeholders and consumer advocates, who argued that the duty would raise call and data tariffs, worsen the cost of living crisis, and slow investment in the sector.

Upon assuming office, President Bola Tinubu suspended the duty in July 2023 pending further review. With the latest announcement, the tax has now been abolished entirely under the government’s ongoing tax reform agenda.

The levy was embedded in fiscal legislation titled: “A Bill for an Act to Repeal Certain Acts on Taxation and Consolidate the Legal Frameworks Relating to Taxation and Enact the Nigeria Tax Act to Provide for Taxation of Income, Transactions, and Instruments, and Related Matters.”

Maida described the abolition as a win for both consumers and the telecom industry. He stressed that telecommunications remain central to Nigeria’s economic activity, financial inclusion, and digital transformation.

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“This removal will reduce cost pressures on operators and, importantly, ease the burden on ordinary Nigerians already grappling with inflation,” he said.

The NCC boss also unveiled ongoing reforms aimed at strengthening transparency and consumer protection. These include:

A public map of network performance, to be launched in September, which will provide independent data on download speeds, latency, and other quality-of-service indicators.

Quarterly performance reports based on user data, which will extend accountability to operators and infrastructure providers.

Maida emphasised that the Commission’s goal is to ensure that Nigerians enjoy reliable, affordable, and transparent telecom services.

Industry observers say the abolition of the levy could encourage further investments in broadband expansion, lower tariffs in the medium term, and boost competitiveness in the sector.

However, they caution that cost savings for consumers will depend on whether operators fully pass on the benefits of tax relief to subscribers.