Tinubu cancels 5% telecoms tax, offering relief to millions of subscribers
Story by Susan Mbamah
Nigerian telecom subscribers can breathe a sigh of relief as President Bola Tinubu has officially abolished the 5% excise duty on telecommunication services.
The tax, which was introduced in 2020, has been a source of contention for years.
The Executive Vice-Chairman of the Nigerian Communications Commission (NCC), Dr. Aminu Maida, confirmed the news in Abuja on Tuesday, stating that the tax, which had been suspended, is now completely gone.
“The excise duty, it was the five per cent or so, that is no longer there,” Maida said. “Before it was suspended, but now the President has been magnanimous to remove it entirely.”
The controversial levy, introduced under the previous administration, was intended to boost government revenue.
However, it was widely criticized by consumers and industry stakeholders who argued it would increase the cost of calls and data, adding to the financial burden of already struggling households.
In July 2023, President Tinubu had issued an executive order to suspend the tax. This latest decision marks its final removal.
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Chief Deolu Ogunbanjo, President of the National Association of Telecom Subscribers of Nigeria (NATCOMs), called the development “soothing news.” He said the removal will lead to “price stabilisation” and prevent another round of tariff hikes for subscribers, who had already faced a 50% increase in January 2025. “If the Federal Government had allowed the five per cent, it means there would have been another round of tariff hikes on data and calls soon,” Ogunbanjo noted.
He also announced that NATCOMs will now withdraw their court case from the Federal High Court, stating, “this is a good one for the over 170 million active subscribers in the country.” However, Ogunbanjo urged the NCC to reduce the January tariff hike from 50% to the originally agreed-upon 35%.
Gbenga Adebayo, Chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON), welcomed the news but stated that operators would be cautious.
“We hope it won’t be that a five per cent was removed from one part but another seven per cent added somewhere else,” he said. He added that telcos are also waiting for the implementation of Tinubu’s broader tax reform laws, which are set to take effect in January 2026.
Service Quality Concerns Remain
Despite the tax relief, consumer groups like ATCIS-Nigeria and NATCOMs continue to raise concerns about the declining quality of service. Complaints about dropped calls and fast data depletion are frequent.
Sina Bilesanmi, President of ATCIS-Nigeria, accused the NCC of “pretending all is well” while subscribers face poor service. “I have been inundated with complaints about low service quality,” he said. “This is coming at a time when telcos are demanding more tariff hikes. There is no justification for poor service when consumers are already stretched.”
In response, Dr. Maida said the NCC is working to address these issues.
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He mentioned a new joint task force with the Central Bank of Nigeria (CBN) to resolve complaints about failed recharges and top-ups. He also noted that new service improvement plans are being reviewed, with operators committing to new investments in network expansion.
Maida stressed that the Commission is updating outdated policies to focus on current technologies like internet connectivity, artificial intelligence, and the Internet of Things (IoT), rather than the voice and SMS-based services of the past. “The policy did not fail, but we must evolve for new realities,” he concluded.
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