The Federal Government has announced the removal of the 5% excise tax on telecommunications services. The policy reversal is expected to ease cost pressures on millions of mobile users in Nigeria.
The levy, which was introduced under the Muhammadu Buhari administration, was designed to cover voice calls and data usage but faced heavy criticism from industry stakeholders and consumer groups.
According to a statement posted on the official X handle of the National Orientation Agency (NOA), Aminu Maida, Executive Vice Chairman of the Nigerian Communications Commission (NCC), confirmed that President Bola Tinubu ordered the tax revocation during deliberations on the newly passed Finance Act.
The decision is expected to bring relief for over 171 million active telecom subscribers nationwide, many of whom have struggled with a 50% tariff hike implemented earlier this year.
The 5% excise duty, announced in 2022, faced widespread criticism from both telecom operators and consumer rights groups, at the time, however the government cited revenue generation as reason for the tax.
Telecom operators, under the umbrella of the Association of Licensed Telecom Operators of Nigeria (ALTON), also warned against the policy.
