In a move celebrated by telecom subscribers across the country, the Federal Government has officially abolished the controversial 5% excise duty on telecommunications services.
The decision, confirmed under the recent tax law reforms, ends what many viewed as an unfair tax burden on voice and data usage.
From Suspension to Full Removal
The excise duty, which was first introduced in the Finance Act 2020, had been suspended but remained a constant concern for consumers and telecom operators alike.
Critics argued that it would lead to higher prices, especially for data users and voice services.
With the passage of the new tax reform laws, the excise duty has now been permanently removed. The announcement was made by the Executive Vice-Chairman of the Nigerian Communications Commission (NCC), Dr. Aminu Maida, who emphasised that the duty “is no longer in effect.”
Implications for Subscribers & Industry
Telecom subscribers, currently numbering in the hundreds of millions in Nigeria, have hailed the removal as a relief. Many had expressed concern that the 5% levy would disproportionately affect low-income users, and that telecommunications was already burdened by multiple taxes and levies.
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Industry stakeholders, including operators and consumer advocacy groups, had consistently challenged the policy, citing its potential to stifle growth in the digital economy.
The permanent removal is expected to reduce cost pressures, improve affordability, and support better access to online services.
What Next
* Regulators are expected to issue guidelines and amend tariff regimes to reflect the new tax status for voice and data services.
* Telecom companies may review pricing structures, potentially passing savings to consumers.
* Observers will be watching to ensure that the removal of excise duty is upheld in practice, and that there are no hidden taxes or levies replacing it.
