JUST IN: FG Revokes 5% Excise Duty on Voice and Data Services to Relieve Nigerians

The Federal Government has scrapped the 5% excise duty on telecommunications services, covering both voice calls and data usage.

The National Orientation Agency announced the decision on Thursday through its official X account, citing confirmation from the Executive Vice Chairman of the Nigerian Communications Commission, Dr. Aminu Maida. He revealed that President Bola Tinubu ordered the removal of the levy during discussions on the recently passed Finance Act.

According to Maida, the step is intended to ease the cost burden on millions of mobile users and safeguard the growth of Nigeria’s digital economy. He stressed that the president’s intervention would prevent additional financial strain on citizens, noting that over 171 million active telecom subscribers stand to benefit from the relief, especially after a 50% tariff increase was introduced earlier this year.

The excise duty was first introduced in 2022 under former President Muhammadu Buhari as part of efforts to raise revenue amid declining oil earnings. At the time, the Ministry of Finance defended the move as consistent with global taxation practices.

However, the policy drew widespread criticism from consumer rights groups and telecom operators, who argued it would deepen financial hardship for Nigerians. The Association of Licensed Telecom Operators of Nigeria repeatedly warned that the tax would be counterproductive, pointing out that the sector already faces one of the highest tax burdens in sub-Saharan Africa.

With the latest directive from the presidency, subscribers and operators alike are expected to feel a measure of relief in the face of rising living costs.