Telecom excise duty removal ordered by President Tinubu aims to reduce call and data costs for over 171 million Nigerians and boost the digital economy

Telecom excise duty removal has been officially ordered by the Federal Government, reversing the controversial 5% levy on voice calls and data services.

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The move is expected to lower costs for over 171 million telecom users across Nigeria and ease financial pressure amid rising inflation.

The announcement was made Thursday by the National Orientation Agency via its official X (formerly Twitter) handle.

It quoted the Executive Vice Chairman of the Nigerian Communications Commission (NCC), Dr. Aminu Maida, who said the tax removal followed a directive from President Bola Tinubu during discussions on the recently passed Finance Act.

“This development is expected to bring relief to over 171 million active telecom users across the country,” said Maida, “many of whom have faced a 50% tariff increase implemented earlier this year.”

The 5% telecom excise duty, introduced in 2022 under former President Muhammadu Buhari, had faced heavy criticism from both industry stakeholders and consumer advocates.

The policy was initially introduced to help boost non-oil revenues but was slammed as regressive and harmful to the digital economy.

Telecom operators, under the Association of Licensed Telecom Operators of Nigeria, had warned that the additional tax would stifle sector growth and limit access to essential digital services, especially for lower-income users.

With this reversal, the Tinubu administration signals a pro-consumer, pro-digital economy agenda, aiming to reduce multiple taxation and encourage tech innovation and investment.

The telecom excise duty removal comes at a time when Nigerians are grappling with economic pressures, including high inflation and increased utility costs.

For many households and small businesses, the cost of staying connected had become a heavy burden.

Analysts say that scrapping the tax will not only reduce call and data prices but also strengthen Nigeria’s push toward financial inclusion, remote work, e-learning, and e-commerce, all of which are heavily reliant on affordable internet access.

Maida explained that the policy shift was consistent with Tinubu’s broader reform agenda: “This is about balancing government revenue needs with the welfare of citizens and the competitiveness of our telecom sector.”

Nigeria’s telecom industry remains one of the largest and most active in Africa, with the potential to drive economic diversification and innovation.

By eliminating the 5% excise duty, the federal government is expected to unlock further investment in network expansion, rural connectivity, and digital infrastructure.

Consumer rights groups have hailed the move as a positive signal that the government is listening to public concerns.

They urge continuous reform to remove unnecessary levies and focus on long-term sector sustainability.

Also read: Nigeria telecom infrastructure protection gets major boost

The FCCPC and NCC have also been directed to intensify market monitoring to ensure that telecom operators pass on cost savings to consumers without delay.

Source: Read more at premiumtimesng.com