The Federal Government has revoked the 5% excise duty that was imposed on telecommunications’ “voice and data services.”
The National Orientation Agency (NOA) announced the revocation on Thursday, stating that the move is expected to ease the financial pressures on millions of phone and data users.
According to Aminu Maida, Executive Vice Chairman of the Nigerian Communications Commission (NCC), President Bola Tinubu ordered the removal of the tax during discussions on the recently passed Finance Act.
Maida noted that the President’s intervention was aimed at preventing “additional financial strain on citizens while supporting the digital economy.”
A statement added that, “The development is expected to bring relief to over 171 million active telecom users across the country, many of whom have faced a 50% tariff increase implemented earlier this year.”
The 5% excise duty, first announced in 2022 to boost government revenue, was defended by the Ministry of Finance at the time as being in line with “global taxation practices.”
However, the Association of Licensed Telecom Operators of Nigeria (ALTON) had warned that the policy would be “counterproductive” since Nigeria already has one of the highest tax burdens on the telecommunications sector in sub-Saharan Africa.
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