The five per cent excise duty on telecommunications services has been permanently scrapped, according to Aminu Maida, Executive Vice-Chairman of the Nigerian Communications Commission (NCC). This move, a reversal of a previous proposal to reinstate the tax, comes as a relief to millions of Nigerians and the telecommunications industry.
The tax has had a tumultuous history. Initially signed into law by the previous administration, President Bola Tinubu had temporarily suspended it in July 2023 to lessen the financial burden on citizens and businesses. However, in October 2024, the National Assembly proposed bringing it back.4This faced strong opposition from the Association of Telecommunications Companies of Nigeria (ATCON), which argued that the tax would be unfair to both consumers and service providers already struggling with operational costs.
According to Maida, President Tinubu made the decision to permanently remove the tax, citing his unwillingness to place additional financial pressure on Nigerians. “The president has been magnanimous to remove it entirely,” Maida stated during a press briefing, adding that he was present when Tinubu made the decision.
This final removal of the tax is a significant win for consumers and the telecommunications sector. It aligns with the government’s stated goal of easing the economic impact of its policies on everyday families and businesses, and it is a decisive step that brings clarity to a long-standing issue.
