Tinubu orders removal of 5% excise duty on telecom voice and data services

The Federal Government has officially scrapped the 5% excise duty that was levied on telecommunications’ voice and data services, to reduce costs for millions of mobile and internet users nationwide.

The National Orientation Agency (NOA) disclosed this development in a statement released on Thursday. The agency explained that President Bola Tinubu directed the abolition of the telecom charge during discussions on the recently approved Finance Act.

Aminu Maida, Executive Vice Chairman of the Nigerian Communications Commission (NCC), revealed that the President’s decision aims to ease the financial burden on citizens while promoting the growth of the digital economy.

This adjustment intends to benefit over 171 million active telecom subscribers across Nigeria, many of whom had endured a 50% increase in tariffs earlier this year.

First introduced in 2022 under former President Muhammadu Buhari, the 5% excise duty was part of the government’s strategy to boost revenue amid declining oil earnings. The Ministry of Finance had justified the tax as consistent with international fiscal practices.

However, telecom service providers, represented by the Association of Licensed Telecom Operators of Nigeria (ALTON), cautioned that the policy could prove counterproductive. They pointed out that Nigeria already carries one of the highest tax burdens on the sector in sub-Saharan Africa.

Removing this duty is a positive shift for telecommunications in Nigeria, providing more affordable access and fostering an environment for further sector development.