Tinubu abolishes 5% Telecom Excise Duty to ease burden on Nigerians

President Bola Tinubu has permanently scrapped the contentious 5% excise duty on telecommunications services, a policy shift aimed at reducing financial strain on consumers and operators in Nigeria’s digital economy.

The decision was disclosed on Tuesday by the Executive Vice-Chairman of the Nigerian Communications Commission (NCC), Aminu Maida, during a media briefing in Abuja.

According to Maida, the duty—initially suspended in 2023—has now been completely abolished under the country’s revised tax laws.

“The 5% excise duty is no longer in effect,” Maida confirmed. “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 was imposed on mobile voice and data services, had faced widespread backlash from stakeholders and consumer advocacy groups, who argued it would increase digital access costs and further squeeze telecom operators already struggling with high operational expenses.

President Tinubu first suspended the policy in July 2023 through executive orders designed to reduce multiple taxation on households and businesses. However, the matter resurfaced in October 2024 when the National Assembly proposed reinstating it alongside new levies on gaming, betting, and lottery services.

The move drew sharp criticism from the telecom industry. The Association of Telecommunications Companies of Nigeria (ATCON) had warned that reintroducing the duty would undermine affordability and slow down the sector’s growth at a time when internet access is critical to economic development.

With the new directive, industry observers say the decision could boost investment confidence in the telecom sector while offering some relief to millions of Nigerians dependent on affordable mobile and internet services.