The Federal Government has permanently removed the controversial 5% excise duty on telecommunications services, a decision announced by the National Orientation Agency (NOA) on Thursday. The move is expected to offer significant financial relief to millions of Nigerians who rely on mobile calls and internet data for communication and business.
The tax, which had been applied to both voice calls and data services, was first introduced during the administration of former President Muhammadu Buhari. It was met with immediate criticism from telecom operators and consumer rights advocates, who argued that it would place an additional financial burden on citizens already facing rising living costs.
The Executive Vice Chairman of the Nigerian Communications Commission (NCC), Dr. Aminu Maida, confirmed the development. He stated that President Bola Tinubu personally ordered the removal of the levy during discussions on the recently signed Finance Act, a testament to his administration’s responsiveness to public concerns.
“This is a clear signal that the government is listening to the concerns of Nigerians and is committed to making communication more affordable,” Maida said in a statement. The decision marks a definitive end to the policy, which had previously been suspended in July 2023 but had resurfaced in legislative discussions.
Industry analysts and consumer groups have welcomed the move, highlighting its potential to drive increased digital inclusion and boost economic activity in the country. The telecommunications sector, which contributes a significant portion to Nigeria’s GDP, is expected to benefit from the enhanced investment and stability that the tax removal provides.
