The Federal Government has scrapped the 5% excise duty tax that was previously imposed on telecommunications services, including voice calls and data usage. This decision was confirmed by the National Orientation Agency through its official social media account on Thursday.
According to the announcement, Dr. Aminu Maida, the Executive Vice Chairman of the Nigerian Communications Commission, revealed that President Bola Tinubu had directed the removal of this tax during discussions surrounding the newly passed Finance Act. The goal of this action is to alleviate financial pressures for the millions of mobile users in the country.
Maida emphasized that President Tinubu’s intervention was aimed at preventing additional economic strain on citizens while also supporting the growth of the digital economy. This move is expected to provide relief to over 171 million active telecom users across Nigeria, especially those who have faced a 50% tariff increase earlier this year.
The 5% excise duty tax, which applied to both voice calls and data subscriptions, was initially introduced under the administration of former President Muhammadu Buhari. The implementation of this tax in 2022 had previously received criticism from telecom operators and consumer rights groups who warned about its adverse impact on the already burdened population.
The Ministry of Finance had justified the tax as a means to boost revenue generation amid declining oil earnings, citing global taxation practices. However, telecom operators, represented by the Association of Licensed Telecom Operators of Nigeria, raised concerns about the excessive tax burden on the sector in Nigeria compared to other countries in sub-Saharan Africa.
The reversal of this excise duty tax is seen as a positive step towards alleviating financial challenges for telecom users in the country and fostering the growth of the digital economy.
