President Bola Tinubu has permanently abolished the contentious 5% excise duty on telecommunications services, ending months of uncertainty around the levy.
The Executive Vice-Chairman of the Nigerian Communications Commission (NCC), Aminu Maida, disclosed the development at a press conference in Abuja on Tuesday. He explained that although the tax had been on hold since 2023, it has now been fully struck out of Nigeria’s revised tax laws.
“The 5% excise duty is no longer in effect,” Maida confirmed. “Initially, it was only suspended, but the President has now completely removed it. I was present when the issue was raised, and he firmly said, ‘No, we cannot place this burden on Nigerians.’ I was very pleased to see that this directive was upheld in the new legislation.”
The duty—which applied to mobile voice and data services—was widely criticized by consumer advocates and telecom operators, who argued it would inflate service costs and worsen operational challenges for the sector.
Tinubu had first ordered the suspension of the tax in July 2023, shortly after assuming office, as part of efforts to reform Nigeria’s fiscal policy and ease pressure on households and businesses.
But the matter resurfaced in late 2024 when lawmakers pushed to reintroduce the levy alongside new taxes on betting, gaming, and lottery operations. The proposal faced heavy pushback, with the Association of Telecommunications Companies of Nigeria (ATCON) warning that such a move would “undermine service affordability and hinder sectoral growth, particularly at a time when reliable internet access is increasingly vital to Nigeria’s economy.”
The President’s decision to scrap the tax altogether is expected to provide relief to millions of mobile users and strengthen confidence in Nigeria’s digital economy.
