FG Scraps 5% Telecom Tax on Calls, Data Services

The Federal Government has officially removed the 5% excise duty earlier imposed on telecommunications services in Nigeria, a decision expected to reduce cost pressures for millions of mobile subscribers.

The National Orientation Agency (NOA) disclosed the development in a post on its official X handle on Thursday, noting that the step reflects the Tinubu administration’s efforts to cushion the impact of economic reforms and enhance affordability in the digital economy.

The tax, which covered both voice calls and data, was introduced under former President Muhammadu Buhari’s administration but faced strong opposition from telecom operators, industry stakeholders, and consumer rights groups, who argued that it would further burden citizens already grappling with rising tariffs and economic hardship.

Executive Vice Chairman of the Nigerian Communications Commission (NCC), Aminu Maida, confirmed the development, stating that President Bola Ahmed Tinubu ordered the scrapping of the tax during deliberations on the recently signed Finance Act.

According to Maida, the removal aligns with the government’s commitment to fostering digital inclusion, easing the cost of communication, and encouraging growth in Nigeria’s telecommunications sector.

The decision is expected to provide relief to over 171 million active telecom users nationwide, who have also been hit with a 50% tariff increase implemented earlier in the year.