FG Scraps 5% Telecom Tax on Voice and Data Services
The Federal Government has cancelled the 5% excise duty on telecommunications services, ending months of concern from industry stakeholders and consumers over rising costs of phone calls and internet data.
The tax, introduced under the administration of former President Muhammadu Buhari, had been widely criticised as an additional burden on Nigeria’s 171 million active telecom subscribers who already face high tariffs and frequent data price hikes.
Aminu Maida, the Executive Vice Chairman of the Nigerian Communications Commission (NCC), confirmed that President Bola Tinubu ordered the removal of the levy during deliberations on the 2025 Finance Act.
Analysts say the decision is expected to bring some relief to households and small businesses that depend heavily on affordable internet and mobile services. Consumer advocacy groups have also welcomed the move, describing it as a step towards easing cost pressures at a time of economic strain.
However, experts caution that immediate price reductions may not be automatic. Telecom operators still face other operating costs, including spectrum fees, infrastructure investments, and energy expenses that continue to weigh on the sector.
Telecom companies have expressed support for the decision, noting that it provides an opportunity to expand services without transferring additional costs to customers. Some operators are expected to pass on the savings, though the extent and timing remain unclear.
Industry watchers believe the removal of the tax could improve data penetration, stimulate innovation, and help Nigeria close its digital divide by making internet access more affordable to underserved communities.
The decision marks a significant reversal of a policy that had drawn strong resistance and positions the Tinubu administration as responsive to concerns over the rising cost of essential services.
