By Ayomide Otitoju
The Federal Government has formally abolished the 5 percent excise duty on telecommunications services, the Nigerian Communications Commission (NCC) announced on Tuesday.
Speaking at a media briefing in Abuja, NCC Executive Vice-Chairman, Aminu Maida, confirmed that the levy—previously suspended in 2023—has now been permanently removed under revised national tax laws.
“The 5% excise duty is no longer in effect,” Maida said. “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 excise duty, which applied to mobile voice and data services, had drawn widespread criticism from industry operators and consumer advocates, who warned it would drive up the cost of digital access and strain telecom companies already struggling with high operational expenses.
President Bola Tinubu first suspended the tax in July 2023 through executive orders issued as part of broader fiscal reforms to ease multiple taxation on households and businesses.
However, the matter resurfaced in October 2024, when lawmakers proposed reintroducing the levy as part of wider revenue-raising measures, which also targeted betting, lottery, and gaming services. The move was strongly opposed by the telecom industry.
The Association of Telecommunications Companies of Nigeria (ATCON) cautioned that reinstating the tax would undermine affordability and threaten sectoral growth, particularly as internet access becomes increasingly central to Nigeria’s economic competitiveness.
With the latest decision, the Federal Government has now put the matter to rest, aligning with its broader push to reduce cost pressures on businesses and consumers.
