The Federal Government has officially scrapped the 5% excise tax on telecommunications services, a move aimed at easing financial pressures for millions of mobile users across Nigeria.
Introduced under the Muhammadu Buhari administration, the tax had faced widespread criticism from consumers and industry stakeholders.
It was temporarily suspended in July 2023 over concerns about its impact on households and businesses, but remained a contentious issue until President Bola Tinubu’s administration decided to eliminate it entirely.
Aminu Maida, Executive Vice Chairman of the Nigerian Communications Commission (NCC), confirmed that the President approved the revocation during deliberations on the recently passed Finance Act.
Maida noted that the decision aligns with broader reforms to enhance digital access and reduce communication costs.
The removal of the tax is expected to benefit over 171 million active telecom subscribers, many of whom had faced a 50% increase in tariffs earlier this year.
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Analysts predict that eliminating the levy will improve digital inclusion and reduce operational costs for businesses heavily reliant on data services.
Consumer advocacy groups and telecom operators have welcomed the move, describing it as a “timely intervention” that will restore affordability and expand access to communication services nationwide.
The decision is also seen as a boost to sector stability and a step toward encouraging further investment.
Officials emphasized that the government remains committed to balancing revenue generation with the need to ensure essential services remain affordable for ordinary Nigerians.