The Federal Government announced on Thursday that it has revoked the controversial five percent excise duty tax previously imposed on voice calls, data usage, and other telecommunication services in the country.
President Bola Tinubu was said to have ordered the scrapping of the policy following the assent to the new Finance Act.
The National Orientation Agency disclosed this on Thursday in a post via its official X (formerly Twitter) handle.
The post said the Executive Vice Chairman of the Nigerian Communications Commission, Dr. Aminu Maida, disclosed that President Bola Tinubu ordered the removal of the tax during discussions on the recently passed Finance Act.
The NCC boss noted that the move is expected to ease cost pressures for millions of mobile users in the country.
Maida added that the President’s intervention was aimed at preventing additional financial strain on citizens while supporting the digital economy.
“The development is expected to bring relief to over 171 million active telecom users across the country, many of whom have faced a 50% tariff increase implemented earlier this year,” he added.
The administration of former President Muhammadu Buhari had introduced the tax, which applies to both voice calls and data subscriptions.
The 5% excise duty, which was first announced in 2022, had faced widespread criticism from both telecom operators and consumer rights groups, who warned it would worsen the financial burden on Nigerians amid rising living costs.
The government’s justification then was part of its effort to boost revenue generation amidst dwindling oil earnings.
At the time, the Ministry of Finance argued that the levy was in line with global taxation practices.
Telecom operators, under the umbrella of the Association of Licensed Telecom Operators of Nigeria, however, warned that the policy would be counterproductive.
The ALTON noted that Nigeria already had one of the highest tax burdens on the telecommunications sector in sub-Saharan Africa.
