Tinubu abolishes 5% excise duty on telecom services to push Nigeria’s digital growth

In a decisive policy move to lower communication costs and accelerate Nigeria’s digital transformation, President Bola Ahmed Tinubu has permanently abolished the 5 per cent excise duty on telecommunications services.

The Nigerian Communications Commission (NCC) confirmed the development, describing it as a relief for over 172 million active subscribers and a boost to investor confidence in the ICT sector.

The decision, confirmed by the Nigerian Communications Commission (NCC), puts to rest months of uncertainty over the controversial levy that had threatened to increase call and data costs for over 172 million active subscribers in the country.

“The excise duty has been scrapped. It will not come back. This aligns with President Tinubu’s broader tax reforms and his Renewed Hope Agenda to make Nigeria’s business environment more competitive,” said Dr. Aminu Maida, executive vice-chairman of the NCC.

Indeed, the excise duty was originally introduced in the 2020 Finance Act, sparking strong pushback from telecom operators and consumer advocacy groups who warned that it would stifle industry growth and worsen affordability for Nigerians already battling rising living costs.

In July 2023, President Tinubu suspended the levy via an Executive Order as part of his fiscal reform agenda.

However, discussions around its reinstatement resurfaced in 2024, creating unease in the industry until this latest announcement confirmed its permanent removal.

Of course, the cancellation of the 5% duty is expected to bring many benefits, including easing cost pressure as consumers could see more affordable voice and data tariffs.

Also, it would boost digital Inclusion by as lower costs will accelerate broadband adoption, aligning with the government’s push for a 70% broadband penetration target by 2025.

In the same vein, it would stabilize the telecom sector as operators will have more breathing space to invest in infrastructure, especially as Nigeria pushes toward 5G expansion.

Industry analysts say the move is a major win for the ICT sector, which contributes more than 16% to Nigeria’s GDP, and could serve as a signal of the government’s commitment to creating a pro-investment climate.

While the removal of the tax is a relief, experts note that affordability gains for subscribers will depend on how operators adjust tariffs in response to reduced levies.

The NCC has assured Nigerians that it will continue to engage stakeholders to ensure consumers enjoy the benefits of the policy change.

About The Author

Dele Fashomi

Dele Fashomi, seasoned journalist and communication teacher, is a holder of Master of Arts degree in Communication and Language Arts from the University of Ibadan in 1992/93.

Earlier, he had bagged a Bachelor degree from the same university in 1984, after which he proceeded to the Nigerian Institute of Journalism, Lagos, in 1990, for a postgraduate diploma in Journalism.

He had done many courses in communication, including the EU-BBC Editing Course in 2002.

Mr. Fashomi combines effectively the practice, research and teaching of communication. And to date, he has published two academic works in communication: Issues in Communication Technology and Policy (2010) and Economic and Social Issues in Advertising and PR (2013).

He had his first break in the Nigerian media in Concord Newspapers in 1990 and today, he has over two and half decades experience earned in several newspapers.

He has been part of many start-ups, such as The Republic (1987), The Comet (1999), The Anchor 2001 – 2002; Sun Newspapers (2003); Westerner newsmagazine (2005 – 2010) as Editor; National Life (2011) as Sunday Editor, and Newswatch Newspapers (2012- 2016) as Daily Editor.

Dele Fashomi is now the Publisher/Editor-in-Chief of Newstide247.com newspaper online, which he started in July 2015. He is also into biography writing, with many books in his trail, some of which he wrote alone and one he co- authored with his mentor, Mr Dare Babarinsa, entitled:  Olabiyi Durojaiye – DARE TO BE DiFFERENT. He also guided and collaborated with Pa Olatunji Odusanya in writing his autobiography – AGAINST ALL ODDS. There are many other books in the works under his pen.

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