FG SCRAPS 5% EXCISE DUTY ON TELECOM SERVICES TO EASE COSTS FOR USERS
Read Time:1 Minute, 19 Second
By Aishat Momoh. O.
The Federal Government has announced the removal of the 5% excise duty on telecommunications services, including voice calls and data, in a move expected to provide relief for millions of mobile users across the country.
The National Orientation Agency disclosed this in a statement via its official X (formerly Twitter) page on Thursday, citing Executive Vice Chairman of the Nigerian Communications Commission (NCC), Dr. Aminu Maida.
According to Maida, President Bola Tinubu ordered the removal of the levy during discussions on the recently passed Finance Act. He said the intervention was aimed at preventing further financial strain on citizens while boosting Nigeria’s digital economy.
“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,” Maida noted.
The 5% tax, introduced under the administration of former President Muhammadu Buhari in 2022, had sparked widespread criticism from telecom operators and consumer rights advocates, who argued it would worsen the financial burden on Nigerians already grappling with high living costs.
At the time, the Ministry of Finance defended the policy as a revenue-generating measure in line with global taxation practices. However, telecom operators under the Association of Licensed Telecom Operators of Nigeria (ALTON) warned it would be counterproductive, stressing that Nigeria already bore one of the heaviest telecom tax burdens in sub-Saharan Africa.
With the latest decision, stakeholders say the removal of the excise duty could help stabilize the sector and improve affordability of telecom services nationwide.
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