President Bola Tinubu has officially abolished the 5% excise duty on telecommunications services, a policy reversal aimed at reducing financial pressure on Nigerian consumers and fostering growth in the country’s digital economy.
The announcement was made on Tuesday by the Executive Vice-Chairman of the Nigerian Communications Commission, Aminu Maida, during a media briefing in Abuja.
Maida confirmed that the levy, which was initially suspended in 2023, has now been permanently removed under revised national tax regulations.
“The 5% excise duty is no longer in effect,” Maida stated. “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 excise tax, which targeted mobile voice and data services, had faced widespread criticism from telecommunications operators and consumer advocacy groups. Many warned that the policy would drive up the cost of digital services and threaten the sustainability of telecom businesses already grappling with rising operational expenses.
President Tinubu first suspended the duty in July 2023 through a set of executive orders issued shortly after assuming office. The suspension formed part of a broader fiscal policy reform to address the impact of overlapping taxes on households and businesses.
However, the issue resurfaced in October 2024 when the National Assembly proposed reintroducing the levy as part of broader revenue-generating measures, which also included taxes on gaming, betting, and lottery services.
The proposed reinstatement was met with firm opposition from key stakeholders in the telecom industry. The Association of Telecommunications Companies of Nigeria (ATCON) argued that bringing back the excise duty would compromise affordability and hinder the sector’s growth—particularly at a time when digital access is crucial for national development.
With the tax now formally abolished, industry players and consumers alike are expected to benefit from improved cost efficiency and service delivery across Nigeria’s expanding digital landscape.
