Tinubu Abolishes 5% Telecom Tax to Reduce Cost Burden on Nigerians

President Bola Ahmed Tinubu has officially removed the five per cent excise duty on telecommunications services, a move aimed at easing financial pressure on millions of subscribers across Nigeria. Eyes Of Lagos reports,

The announcement was confirmed by the Executive Vice-Chairman of the Nigerian Communications Commission (NCC), Dr. Aminu Maida, during an interactive media session in Abuja on Tuesday.

According to Maida, the levy—initially suspended in 2023 following public backlash—has now been completely abolished under Tinubu’s directive.

“The excise duty, which was about five per cent, is no longer applicable,” Maida said. “It was suspended before, but the President has now directed its full removal. I was pleased to see that his commitment was followed through.”

The controversial levy was introduced in 2022 under former President Muhammadu Buhari as part of a wider tax reform initiative. However, stakeholders argued it would increase the cost of telecom services for consumers and stifle digital growth.

Maida noted that the scrapping of the tax would lower the cost of communication, promote consumer welfare, and encourage investment in Nigeria’s telecom sector, a key driver of the nation’s digital economy.

The NCC also announced a series of reforms and transparency measures, including:

• A public network performance map set to launch in September, showing data on download speeds, latency, and service quality.

• Quarterly network performance reports to hold operators and infrastructure providers accountable.

• Strengthened corporate governance frameworks to attract investment and enhance competition among Nigerian-owned telecom firms.

On ongoing industry concerns, Maida revealed progress in addressing USSD debt disputes, NIN-SIM linkage audits, and data depletion complaints. He said recent audits found no widespread fraud but identified causes such as device background data usage and complex tariff plans.

The NCC further plans to implement a new recharge framework in partnership with the Central Bank of Nigeria to standardize payment processes and improve consumer protection.

Nigeria currently has 172 million active telecom subscribers, including 141 million internet users and 105 million broadband subscribers, according to the NCC.