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FG Removes 5% Telecom Tax on Voice, Data Services
The Federal Government has revoked the 5% excise tax previously imposed on telecommunications services, in a decision expected to ease cost pressures for millions of mobile users across Nigeria.
The tax, introduced under the administration of former President Muhammadu Buhari, was meant to apply to both voice calls and data subscriptions. However, it had faced intense opposition from industry stakeholders and consumer rights advocates, who argued that it would stifle growth in the telecom sector and worsen the cost-of-living crisis.
Tinubu Orders Removal Through Finance Act
Executive Vice Chairman of the Nigerian Communications Commission (NCC), Dr. Aminu Maida, confirmed the development, stating that President Bola Tinubu directed the tax removal during deliberations on the recently enacted Finance Act.
“The President has approved the cancellation of the 5% excise tax on telecom services. This is in line with the administration’s commitment to reducing the cost burden on citizens and supporting digital inclusion,” Maida said.
Relief for Millions of Subscribers
Nigeria currently boasts more than 171 million active telecom users, many of whom have struggled with rising costs following a 50% tariff hike introduced earlier this year. The scrapping of the tax is expected to bring significant relief to consumers, while also supporting operators battling inflation, rising operating costs, and foreign exchange challenges.
Industry Reactions and Implications
Telecom operators and advocacy groups have welcomed the move, noting that the removal will help stabilize the industry and encourage greater investment in network expansion and service quality. Analysts also suggest that it could boost digital adoption and bridge Nigeria’s connectivity gap, particularly in rural areas.
The decision aligns with Tinubu’s broader economic reforms aimed at cushioning Nigerians from multiple taxes and charges while promoting investment-friendly policies across critical sectors.
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