President Bola Tinubu has permanently scrapped the controversial 5% excise duty on telecommunications services in a move aimed at reducing the financial strain on Nigerian consumers and boosting growth in the country’s digital economy.
The announcement was made on Tuesday by the Executive Vice-Chairman of the Nigerian Communications Commission (NCC), Dr. Aminu Maida, during a media briefing in Abuja.
Maida confirmed that the levy, initially suspended in 2023, has now been formally removed under revised national tax legislation.
“The 5% excise duty is no longer in effect,” Maida stated. “It was previously suspended, but the President has now completely abolished it. I was present when the matter was raised, and he clearly said, ‘No, we cannot place this burden on Nigerians.’ I was very pleased to see that this directive has now been enshrined in law.”
The now-abolished tax applied to mobile voice and data services and had drawn widespread criticism from telecom operators and consumer rights groups, who warned it would raise costs, limit digital access, and threaten the viability of telecom businesses already contending with high operating expenses.
President Tinubu first suspended the tax in July 2023, shortly after assuming office, as part of a broader fiscal policy review aimed at eliminating overlapping and burdensome taxes on households and enterprises. The suspension was enacted through a series of executive orders targeting reforms in Nigeria’s complex tax environment.
However, the issue resurfaced in October 2024 when the National Assembly proposed reintroducing the excise duty as part of new revenue-generating measures, which also included levies on gaming, betting, and lottery services.
The proposal was met with fierce opposition from industry stakeholders.
The Association of Telecommunications Companies of Nigeria (ATCON) strongly opposed the reinstatement, warning that the move would compromise service affordability, discourage investment, and undermine digital inclusion efforts at a time when reliable internet access is essential for economic participation and innovation.
By permanently abolishing the excise duty, the Tinubu administration has reaffirmed its commitment to fostering a more supportive regulatory and fiscal environment for the tech and telecom sectors—critical pillars of Nigeria’s emerging digital economy.
