GOOD NEWS FOR NIGERIANS:Nigerians to Enjoy Cheaper Calls Rate, Data As Tinubu Scaps 5% Telecomms Levy

By: Olufemi Orunsola 

In a strategic policy move towards lowering communication costs and fasttracking Nigeria’s digital transformation, President Bola Ahmed Tinubu has permanently abolished the 5 per cent excise duty on telecommunications services. 

OPEN TELEVISION NAIJA (OTN) News reports that the policy shift has been confirmed by the Nigerian Communications Commission (NCC) which describe it as a relief for over 172 million active subscribers and a boost to investor confidence in the ICT sector.

This confirmation of the development 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.

According to the Executive Vice-Chairman of the NCC, Dr. Aminu Maida, “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."

OTN News recalls that the controversial levy 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.

Earlier, precisely 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.

Given this development, subscribers and endusers of telecommunications services are expected to enjoy more affordable voice and data tariffs with lower costs across the board facilitating broadband adoption which aligns with the government’s push for a 70% broadband penetration target by 2025.

Among other things, experts say that the new move by the FG could go a long way to stabilize the Telecom Sector, giving Operators more breathing space to invest in infrastructure, especially as Nigeria pushes toward 5G expansion.

Furthermore, 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.

However, some experts have pointed out that it is not yet uhuru for the sector, noting that while the removal of the tax is a cheering news, teal time affordability gains for subscribers will depend on how operators adjust tariffs in response to the reduced levies.

Meanwhile, the NCC has assured Nigerians that it remains dedicated to performing its industry regulatory and ocersight functions with primary focus on engaging stakeholders to ensure consumers enjoy the maximum benefits of the policy shift.