FG Abolishes 5% Telecom Tax on Voice and Data Services

The Federal Government has scrapped the 5% excise duty previously imposed on telecommunications services, a move expected to ease cost burdens for millions of Nigerians.

The levy, introduced during the administration of former President Muhammadu Buhari, applied to both voice calls and data usage but drew widespread backlash from telecom operators, industry stakeholders, and consumer rights advocates.

Confirming the development, the Executive Vice Chairman of the Nigerian Communications Commission (NCC), Aminu Maida, disclosed that President Bola Tinubu directed the tax removal during deliberations on the recently signed Finance Act.

According to the National Orientation Agency (NOA), the policy reversal is projected to provide relief to over 171 million active telecom subscribers across the country, many of whom have been struggling with higher costs following a 50% tariff hike earlier this year.

The 5% excise duty, first announced in 2022, was justified by the government as a revenue-generation measure. However, telecom operators, under the Association of Licensed Telecom Operators of Nigeria (ALTON), strongly opposed it, warning that it would further burden consumers and stifle sector growth.

With this latest directive, stakeholders believe the move could help stabilise the industry and bring some respite to subscribers already grappling with rising living costs.