Economy
Tinubu Scraps 5% Tax on Calls and Data
President Bola Tinubu has permanently scrapped the 5% excise duty on telecommunications services, a move aimed at reducing financial strain on consumers and supporting Nigeria’s digital economy.
The announcement was made by the Executive Vice-Chairman of the Nigerian Communications Commission (NCC), Aminu Maida, during a media briefing in Abuja on Tuesday.
Maida explained that while the excise levy was initially suspended in 2023, the President has now completely abolished it under revised national tax laws.
“The 5% excise duty is no longer in effect,” Maida stated.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 tax, which applied to mobile voice and data services, faced heavy criticism from industry stakeholders and consumer advocacy groups, who argued it would raise digital costs and weaken the telecom sector already battling high operational expenses.
Tinubu first suspended the tax in July 2023 as part of his fiscal reforms to reduce multiple tax burdens on businesses and households. However, the issue resurfaced in October 2024 when the National Assembly proposed its reinstatement alongside new levies on gaming, betting, and lottery services.
The telecom sector strongly opposed the move, with the Association of Telecommunications Companies of Nigeria (ATCON) warning that it would undermine service affordability and stifle industry growth at a time when internet access is crucial to Nigeria’s economy.
By abolishing the levy, the Federal Government hopes to encourage broader digital inclusion and strengthen the telecommunications sector’s role in economic development.
