President Bola Tinubu has permanently abolished the controversial 5% excise duty on telecommunications services, in a move designed to reduce financial strain on consumers and boost Nigeria’s digital economy.

The development was confirmed on Tuesday by the Executive Vice-Chairman of the Nigerian Communications Commission (NCC), Dr. Aminu Maida, during a media briefing in Abuja.

Maida explained that the duty, which had been suspended in 2023, has now been officially removed under the revised national tax laws.

“The 5% excise duty is no longer in effect,” Maida said. “Initially, it was only suspended, but the President has now completely removed it. I was present when the issue was raised, and he firmly said, ‘No, we cannot place this burden on Nigerians.’ I was very pleased to see that this directive was upheld in the new legislation.”

The tax, which applied to mobile voice and data services, had faced widespread opposition from industry stakeholders and consumer rights groups. Critics argued that the levy would drive up the cost of digital access, worsen the financial burden on households, and threaten the viability of telecom operators already battling high operational expenses.

Tinubu first suspended the tax in July 2023 as part of a fiscal policy review aimed at easing the impact of multiple levies on businesses and households. The suspension was contained in a set of executive orders signed shortly after his inauguration.

The matter resurfaced in October 2024 when the National Assembly proposed reinstating the levy as part of new revenue-generating measures, alongside taxes on gaming, betting, and lottery services. The move, however, was strongly resisted by stakeholders.

The Association of Telecommunications Companies of Nigeria (ATCON) warned that reintroducing the excise duty would undermine affordability, stifle innovation, and slow down sectoral growth at a time when digital connectivity is crucial to Nigeria’s economic transformation.

With the official removal of the tax, the government is expected to strengthen its commitment to expanding digital inclusion, reducing the cost of internet services, and supporting the growth of Nigeria’s telecoms industry.