President Tinubu Scraps 5% Telecoms Tax, Bringing Relief To Nigerian Subscribers.
In a significant move to alleviate financial burdens on Nigerians, President Bola Tinubu has abolished the 5 per cent excise duty on telecommunications services as part of the country’s new tax laws. The announcement, confirmed by Dr Aminu Maida, Executive Vice-Chairman of the Nigerian Communications Commission (NCC), is set to ease cost pressures for millions of telecom subscribers across Nigeria.
Dr Maida, speaking at a press briefing in Abuja on Tuesday, revealed that the tax, which was initially suspended in July 2023, has now been permanently removed. “The excise duty, it was the 5 per cent or so, that is no longer there,” Maida stated. “Before it was suspended, but now the president has been magnanimous to remove it entirely. I was in a room when it was raised, and he said, ‘No, no, no, we cannot put this on Nigerians.’ I was very pleased when the bills came out, and we saw his words were followed through.”
The decision marks the culmination of a contentious journey for the telecom tax, first introduced in 2022 under former President Muhammadu Buhari’s administration. The levy faced widespread criticism from industry stakeholders and consumers, who argued it would inflate the cost of calls, data, and other telecom services, further straining households already grappling with economic challenges. The public outcry led to its suspension two years ago, with President Tinubu citing its detrimental impact on both consumers and the broader economy.
The removal of the tax is part of a broader tax reform initiative outlined in a bill titled “A Bill for an Act to Repeal Certain Acts on Taxation and Consolidate the Legal Frameworks relating to Taxation and Enact the Nigeria Tax Act to Provide for Taxation of Income, Transactions, and Instruments, and Related Matters.” This reform aims to streamline Nigeria’s tax system, reduce financial pressures on citizens, and foster a more business-friendly environment.
Industry leaders have welcomed the move, with the Chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON), Gbenga Adebayo, expressing cautious optimism. He noted that the industry awaits the full details of the reform to ensure no additional levies are introduced elsewhere. Meanwhile, Chief Deolu Ogunbanjo, President of the National Association of Telecom Subscribers of Nigeria (NATCOMs), described the decision as “soothing,” suggesting it could stabilise tariffs and prevent further price hikes for calls and data.
With Nigeria boasting over 172 million active telecom subscribers, including 141 million internet users, the abolition of the tax is expected to enhance affordability and promote digital inclusion. The NCC also highlighted ongoing reforms, including a forthcoming public network performance map to provide real-time data on internet speeds and reliability, set to launch in September.
President Tinubu’s decision underscores his administration’s commitment to reducing economic burdens and fostering growth in Nigeria’s digital economy. As the nation navigates a challenging economic landscape, this move offers a glimmer of hope for subscribers seeking more affordable access to essential telecom services.
