Tinubu Cancels 5% Tax on Telecom Voice and Data Services

The Federal Government has officially abolished the 5% excise duty previously charged on telecommunications services, including voice calls and internet data.

This was announced by the National Orientation Agency in a statement posted on its official X (formerly Twitter) handle on Thursday. According to the post, the Executive Vice Chairman of the Nigerian Communications Commission (NCC), Dr. Aminu Maida, revealed that President Bola Tinubu directed the removal of the levy during deliberations on the newly enacted Finance Act.

Maida explained that the President’s decision was to protect Nigerians from further financial hardship and to encourage growth in the country’s digital economy. He stressed that the policy shift will help reduce costs for millions of mobile users, bringing relief to over 171 million active subscribers nationwide.

The 5% telecom tax, first introduced under former President Muhammadu Buhari’s administration in 2022, had sparked outrage from industry stakeholders and consumer advocates. Operators under the Association of Licensed Telecom Operators of Nigeria (ALTON) argued that the levy would hinder sector growth, warning that Nigeria already bears one of the heaviest telecom tax burdens in sub-Saharan Africa.

At the time, government officials defended the tax as a revenue-boosting measure aligned with international best practices, citing dwindling oil income. However, critics maintained that it only deepened the economic strain on citizens already grappling with high living costs and recent tariff hikes.