The Federal Government yesterday stated that it had finally laid to rest the proposed five per cent excise duty on telecom services introduced in the 2020 Finance Act under former President Muhammadu Buhari.
Executive Vice Chairman, Nigerian Communications Commission (NCC), Dr. Aminu Maida, confirmed that President Bola Tinubu ordered the removal of the tax during discussions on the recently passed Finance Act.
“The step reflects the Tinubu administration’s efforts to cushion the impact of economic reforms and enhance affordability in the digital economy,” the National Orientation Agency (NOA) said in a post via its official X (formerly Twitter) page yesterday.
Reacting to the development, telecom operators said it is a welcome development. Acting under the aegis of the Association of Licensed Telecom Companies of Nigeria (ALTON), the group said it will ease the pressure on the disposable cash of the subscribers grappling with food inflation.
ALTON Chairman, Gbenga Adebayo, said though the MNOs were yet to receive official communication from the Federal Government, it was nonetheless a welcome development.
“We are yet to receive any official communication to that effect. We have also read it but if it is true, it is a good development for the subscribers. He said had the tax been implemented, it would have been collected by the MNOs on behalf of the Federal Government. So it is a huge relief to the subscribers. I think it is part of the tax reforms of President Tinubu that is seeking to harmonise the various taxes. It is a good development; it will reduce pressure on subscribers,” he said.
Also, the National Association of Telecom Subscribers of Nigeria (NATCOMS) welcome the final death of the ‘nuisance tax’. NATCOMS president, Deolu Ogunbanjo said the group will now go and withdraw its case against the government in court because the hearing fixed for October 7, 2025 has now been overtaken by this development.
“This matter has been around since the time of Ali Pantami, the former Minister of Communications and Digital Economy). So for us, it is victory for telecom consumers. Recall the implementation of the tax was suspended but we approached the court to cancel the tax,” Ogunbanjo said.
The abolition of the five per cent excise duty on telecommunications services, including mobile voice and data, had come after President Tinubu’s order on August 19, 2025, which was confirmed by the NCC on August 20, 2025. This move reversed efforts by some lawmakers to reintroduce the tax, which was first introduced in the 2020 Finance Act, suspended in 2023, and then re-proposed in the 2024 Tax Bill. The government’s decision aims to make services more affordable and support the growth of the digital economy.
In July 2023, President Tinubu suspended the levy as part of his fiscal reform agenda, citing concerns about inflation and access to digital services. Despite the suspension, the levy was proposed again in the 2024 Tax Bill, with some lawmakers pushing for its reinstatement in the Senate in May 2025.
The removal is expected to provide relief to millions of mobile users by preventing additional financial strain, potentially reducing phone bills and supporting growth in the telecom sector.
