Tinubu Abolishes 5% Telecoms Excise Duty, Confirms NCC

By Iyojo Ameh

President Bola Tinubu has permanently scrapped the controversial 5 percent excise duty on telecommunications services, in a move expected to ease financial pressure on consumers and operators in Nigeria’s digital economy.

The Executive Vice-Chairman of the Nigerian Communications Commission (NCC), Dr.

“The 5 percent excise duty is no longer in effect,” Maida said.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 duty, which applied to mobile voice and data services, had faced stiff opposition from industry stakeholders and consumer advocacy groups, who warned it would increase the cost of digital access and worsen operational challenges for telecom providers.

Tinubu first suspended the tax in July 2023, shortly after assuming office, as part of wider fiscal reforms to reduce multiple taxation on businesses and households. But the debate resurfaced in October 2024 when the National Assembly proposed reintroducing the levy as part of revenue-raising measures, alongside new charges on gaming and betting services.

The proposal was strongly resisted by the telecom sector. The Association of Telecommunications Companies of Nigeria (ATCON) argued that reinstating the excise duty would undermine affordability and hinder sectoral growth at a time when internet access is critical to economic development.

With the President’s latest directive now enshrined in law, telecom operators and subscribers are expected to benefit from reduced cost pressures as the sector continues to play a central role in Nigeria’s digital transformation agenda.