The Federal Government has officially scrapped the proposed five per cent excise duty on telecommunications services, a move expected to reduce costs for businesses and subscribers alike.
Executive Vice Chairman of the Nigerian Communications Commission (NCC), Dr. Aminu Maida, confirmed that President Bola Tinubu ordered the removal of the tax during deliberations on the newly passed Finance Act. According to the National Orientation Agency (NOA), the decision is part of the administration's effort to ease the burden of economic reforms and make digital services more affordable.
Telecom operators under the Association of Licensed Telecom Companies of Nigeria (ALTON) described the removal as a major relief for subscribers already dealing with inflation. They noted that if implemented, mobile network operators (MNOs) would have collected the levy on behalf of the government, increasing the cost of calls and data.
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The National Association of Telecom Subscribers of Nigeria (NATCOMS) also hailed the move, calling it a victory for consumers and confirming plans to withdraw its pending court case against the tax.
The duty, first introduced in the 2020 Finance Act under former President Muhammadu Buhari, was suspended in 2023, re-proposed in the 2024 Tax Bill, and debated again in 2025. Its final removal, confirmed by the NCC in August 2025, reflects Tinubu's broader tax reform agenda aimed at harmonising levies and encouraging digital growth.
For SMEs, the scrapping of the excise duty means lower telecom costs, making it easier to manage communication expenses, access online platforms, and scale digital operations. With reduced pressure on phone bills and data costs, small businesses are expected to benefit from improved affordability and better participation in the digital economy.
