Tinubu Ends Controversial Telecoms Levy

The Federal Government has removed the 5% excise tax on voice and data services, finally settling months of debate around the duty. The announcement came on Tuesday from Aminu Maida, the Executive Vice-Chairman of the Nigerian Communications Commission (NCC), during a media briefing in Abuja.

Maida said the levy, which was first suspended in 2023, has now been erased under revised tax laws. “The 5% excise duty is no longer in effect,” he stated. “Initially, it was only suspended, but the President has now completely removed it. I was present when the issue was raised, and he firmly said, ‘No, we cannot place this burden on Nigerians.’”

Industry Welcomes Relief

The scrapped levy had been a flashpoint between government, telecom operators and consumer groups. Critics said the duty would make digital services more expensive and weaken a sector already grappling with high running costs.

The Association of Telecommunications Companies of Nigeria (ATCON) warned that reviving the tax would stifle growth. The group argued that it risked pushing internet access further out of reach for millions at a time when connectivity is critical to economic activity.

President Bola Tinubu first paused the tax in July 2023 through executive orders signed after his inauguration. That suspension was part of wider fiscal reforms intended to ease multiple taxation on households and businesses.

However, lawmakers attempted to bring the duty back in October 2024 as part of new revenue plans, alongside levies on lottery, betting and gaming. The move triggered strong resistance from the telecom sector, which insisted the duty would hurt affordability and slow digital inclusion.

With the NCC’s confirmation, the removal is now law. The government hopes the measure will help stabilise service costs and encourage wider internet use across the country.