The Federal Government has officially removed the 5% excise duty on telecommunications services. This decision, which overturns a proposed reintroduction of the tax, is expected to provide relief to over 170 million Nigerian subscribers by ensuring the affordability of voice and data services.
According to Dr. Aminu Maida, the Executive Vice-Chairman of the Nigerian Communications Commission (NCC), this move will drive growth in the country’s telecom sector, ease financial pressure on consumers, and promote digital inclusion nationwide.
“The president has been magnanimous in removing the 5% excise duty on telecommunications services. He believed the tax was an unnecessary burden on Nigerians,” Dr. Maida said.
The excise duty was initially introduced in 2022 by the previous administration but was suspended in July 2023 by President Bola Ahmed Tinubu. A new tax reform bill was proposed its reintroduction in October 2024, but the government has now permanently scrapped the levy. The removal is a significant win for Nigerian consumers, as it guarantees that voice and data costs will not increase due to this tax.
For subscribers, this means their current voice and data costs will remain stable, offering more value for their money. This increased purchasing power is a relief for families, students, and businesses that depend on telecommunications for daily activities.
In addition to the tax removal, the NCC is implementing measures to ensure transparency and protect consumers. Dr. Maida explained that the NCC is now using behavioral economics to complement its traditional oversight, providing consumers with information to make better choices.
One of the key initiatives is the release of independent data on network performance. Starting in September, the NCC will publish information on download speeds and other quality indicators, allowing subscribers to compare network providers in their areas. There will also be a quarterly network performance report based on user data, which will hold both mobile operators and infrastructure providers accountable for service reliability.