President Bola Tinubu has permanently abolished the 5% excise duty on telecommunications services under Nigeria’s new tax law, the Nigerian Communications Commission (NCC) confirmed. According to BusinessDay, the levy, originally introduced under the 2020 Finance Act, had been suspended in 2023 but has now been fully removed as part of efforts to reduce financial strain on subscribers.
NCC Executive Vice Chairman Aminu Maida described the decision as a relief for operators and the nation’s over 170 million subscribers. According to The Guardian, telecom users had long opposed the tax, warning that it would raise call and data costs in an already high-inflation environment.
The move also aligns with the administration’s broader fiscal reforms aimed at improving ease of doing business. According to BusinessDay, industry stakeholders say scrapping the levy could stimulate sector growth by encouraging higher consumer spending and creating room for operators to reinvest in infrastructure.
Analysts note that the decision provides regulatory clarity for telecom operators who had previously faced uncertainty over the suspended tax. According to The Guardian, eliminating the duty may also help attract more investment into Nigeria’s digital economy, which has become a key driver of GDP growth.
By removing the excise tax, the government signals a pro-consumer and pro-business stance, positioning the telecom sector as a critical enabler of financial inclusion and economic diversification. According to BusinessDay, the reform is expected to support higher adoption of digital services and strengthen Nigeria’s competitiveness in Africa’s telecom market.
