Federal Government removes 5% telecom tax

Federal Government removes 5% telecom tax on voice, data services

The Federal Government has removed the 5% excise tax on telecom services. President Bola Tinubu ordered the reversal during discussions on the newly passed Finance Act, according to Aminu Maida, Executive Vice Chairman of the Nigerian Communications Commission (NCC).

The policy change is expected to ease cost pressures on more than 171 million active telecom users. Many subscribers have struggled with higher costs since a 50% tariff hike earlier this year. By eliminating the excise tax, the government hopes to bring relief to households and businesses already dealing with economic hardship.

Former President Muhammadu Buhari introduced the 5% telecom tax in 2022 to cover voice calls and data usage. However, the excise duty immediately sparked widespread criticism from industry stakeholders and consumer rights groups. Many argued that it added unnecessary financial strain on Nigerians while telecom operators faced increased operational challenges.

The Association of Licensed Telecom Operators of Nigeria (ALTON) strongly opposed the levy. They consistently warned that the tax would harm both operators and consumers, leading to reduced investment and lower service quality. With Tinubu’s intervention, operators believe the policy reversal will encourage industry growth and protect millions of subscribers.