*Dr. Aminu Maida, Executive Vice-Chairman and CEO of the Nigerian Communications Commission, affirms the Federal Government has abolished the controversial 5 percent excise duty on telecoms services to ease off current financial pressures on consumers, businesses, and accelerate digital economy

Gbenga Kayode | 绿帽献妻

The Federal Government has removed the controversial five percent excise duty on telecoms services in order to ease further burden on consumers, business concerns, and advance the Nigeria Digital Economy.

绿帽献妻 reports President Bola Ahmed Tinubu permanently abolished the excise duty on telecommunications services in the West African country.

Industry analysts and observers said the Presidential directive was a veritable measure aimed at easing off current financial pressures on Nigerian consumers, and businesses while accelerating the emerging digital economy.

The five percent excise duty was part of the then broader Tax Reforms initiative under a bill titled: 鈥淎 Bill for an Act to Repeal Certain Acts on Taxation and Consolidate the Legal Frameworks relating to Taxation and Enact the Nigeria Tax Act to Provide for Taxation of Income, Transactions, and Instruments, and Related Matters鈥�.

Maida: Telecoms tax removed under revised tax laws

Dr. Aminu Maida, Executive Vice-Chairman and Chief Executive Officer (EVC/CEO) of the Nigerian Communications Commission (NCC), affirmed this development at a media interactive session Tuesday, August 19, 2025, in Abuja, FCT.

Maida said the excise levy, which the Nigerian Government initially, suspended 2023, had been officially removed under revised national tax laws.

The EVC/CEO of NCC also stated: 鈥淭he 5% excise duty is no longer in effect.

鈥淚nitially, it was only suspended, but the President has now completely removed it.”

He explained: “I was present when the issue was raised, and he firmly said, 鈥楴o, we cannot place this burden on Nigerians.鈥�

“I was very pleased to see that this directive was upheld in the new legislation.鈥�

It is recalled that the excise duty on telecoms services, which applied to mobile voice and data services, had sparked considerable pushback from both industry stakeholders and consumer advocacy groups across the country.

Initially, the proposed tax had faced strong opposition since the government first introduced it 2022 during former President Muhammadu Buhari鈥檚 administration.

Stakeholders also contended that the tax would increase the cost of digital access, and threaten the viability of telecoms operators already grappling with soaring operational costs.

Reacting to the previous backlash by stakeholders, consumer advocacy groups, and Civil Society Organisations (CSOs), President Tinubu subsequently suspended the tax July 2023 as part of a broader fiscal policy overhaul.

The suspension of the excise duty came through a series of Executive Orders (EOs), which the President had signed shortly after he assumed office May 2023.

The needed review was aimed at mitigating the impact of multiple tax burdens on Nigerian businesses, households, and consumers at large.

NASS鈥� attnmept to reintroduce telecoms excise duty

Despite the Presidential Order, the Nigerian Government revisited the issue October 2024, when the National Assembly (NASS) proposed reinstating the tax as part of broader revenue-generating measures, which also included levies on gaming, betting, and lottery services in the country’s digital ecosystem.

However, industry associations, including the Association of Telecommunications Companies of Nigeria (ATCON) and Association of Licensed Telecoms Companies of Nigeria (ALTON) kicked against the renewed proposal to introduce the tax.

The strong resistance from the telecoms sector indicated that reinstating the excise duty would undermine service affordability for consumers, and hinder sectoral growth, particularly at a time when reliable Internet access is increasingly vital to development of the Nigerian economy.