FG scraps 5% telecom tax on voice, data services

File photo of the Executive Vice Chairman of the NCC, Dr. Aminu Maida
The Federal Government has officially scrapped the 5% excise duty previously imposed on telecommunications services, including voice calls and data usage.

The announcement was made on Thursday via the official X (formerly Twitter) handle of the National Orientation Agency (NOA).

According to the post, the Executive Vice Chairman of the Nigerian Communications Commission (NCC), Dr. Aminu Maida, confirmed that President Bola Tinubu directed the removal of the tax during deliberations on the recently passed Finance Act.

Maida explained that the President’s intervention is aimed at easing financial pressure on millions of mobile users and supporting the country’s digital economy agenda.

“This development is expected to bring relief to over 171 million active telecom subscribers across the country, many of whom have already endured a 50% tariff hike implemented earlier this year,” Maida said.

The 5% excise duty, which applied to both voice and data services, was originally introduced in 2022 under the administration of the late former President Muhammadu Buhari.

At the time, the government argued that the tax was necessary to boost non-oil revenue and aligned with international tax practices. However, the policy faced widespread backlash from telecom operators and consumer advocacy groups, who warned it would exacerbate economic hardship amid rising living costs.

The Association of Licensed Telecom Operators of Nigeria (ALTON) criticized the tax as counterproductive, noting that Nigeria already ranks among the countries with the highest tax burdens on telecom operators in sub-Saharan Africa.

With the removal of the excise duty, stakeholders expect improved affordability and access to telecommunications services, especially for low-income users.