Tinubu abolishes 5% telecom excise duty to ease cost burden on Nigerians

By Kunle Sanni –

President Bola Tinubu has permanently removed the 5% excise duty on telecommunications services, a levy that industry stakeholders and consumer groups had long opposed.

The decision was confirmed on Tuesday in Abuja by Nigerian Communications Commission (NCC) Executive Vice-Chairman Aminu Maida, who said the duty—initially suspended in July 2023—has now been scrapped entirely under revised tax laws.

“The 5% excise duty is no longer in effect,” Maida announced at a media briefing. “Initially, it was suspended, but the President has now completely removed it. I was present when the matter came up, and he firmly said, ‘No, we cannot place this burden on Nigerians.’”

The duty, which applied to mobile voice and data services, had been widely criticized for potentially increasing the cost of digital access and straining telecom operators already battling high operational costs.

President Tinubu first halted the tax shortly after taking office as part of a broader fiscal policy overhaul aimed at reducing multiple tax burdens on businesses and households. However, debate over its reinstatement resurfaced in October 2024 when the National Assembly proposed reviving the levy as part of new revenue measures.

The Association of Telecommunications Companies of Nigeria (ATCON) warned at the time that reinstating the duty would erode service affordability and slow sectoral growth, particularly as internet connectivity becomes increasingly critical to Nigeria’s digital economy.

With Tuesday’s confirmation, the excise duty is now officially abolished, providing relief for telecom consumers and signaling the administration’s continued push to streamline Nigeria’s tax system.