By Africa Live News Staff
The Federal Government has officially removed the 5% excise duty on telecommunications services, in a move widely expected to ease the financial pressure on millions of Nigerians who rely on voice and data for their daily lives. The announcement, made Thursday by the National Orientation Agency (NOA) in a press release shared via its official X handle, is being hailed as a decisive step to strengthen consumer protection and boost Nigeria’s digital economy.
Background: A Controversial Levy
The 5% excise tax was first introduced during the administration of former President Muhammadu Buhari. Designed as part of wider fiscal reforms, the levy was applied to both voice calls and data usage, directly increasing the cost of telecommunications for Nigeria’s 171 million active subscribers.
From the beginning, the tax attracted widespread opposition. Industry stakeholders, including telecom operators, consumer rights groups, and digital advocacy organisations, argued that the levy was regressive, placed an unfair burden on citizens, and threatened to slow Nigeria’s ambitions for a technology-driven economy. Many Nigerians already facing inflation and rising living costs saw the tax as yet another strain on their pockets.
Tinubu’s Intervention
According to the Nigerian Communications Commission (NCC), President Bola Ahmed Tinubu personally intervened in discussions surrounding the newly passed Finance Act, directing that the tax be scrapped entirely.
“The directive came directly from President Tinubu to ensure that Nigerians are not further burdened at a time of economic pressure,” said Dr. Aminu Maida, the NCC’s Executive Vice Chairman, in the official release.
The move reflects Tinubu’s stated commitment to reforms aimed at stimulating growth and providing relief to households. Since assuming office, his administration has prioritised policies designed to reduce bottlenecks, promote investor confidence, and lessen the daily struggles of ordinary citizens.
Relief for Millions of Subscribers
The impact of the removal will be felt immediately by Nigeria’s 171 million telecom subscribers, who have been struggling with higher costs following a 50% tariff increase earlier this year. For many households, particularly in rural and low-income communities, telecommunications expenses represent a significant portion of monthly income.
By removing the levy, the government hopes to ease access to affordable voice and data services, which are increasingly essential for work, education, healthcare, and financial transactions. In a country where mobile phones serve as the primary gateway to the internet, the decision could widen digital inclusion and bridge connectivity gaps between urban and rural populations.
Consumer rights groups, which had long campaigned for the elimination of the tax, applauded the announcement. “This is a win for every Nigerian consumer,” said Barrister Toyin Adebayo, a consumer advocacy lawyer based in Lagos. “Access to digital services is not a luxury—it is a necessity. Removing the excise tax shows that government is listening to the people.”
Boost for the Digital Economy
Nigeria’s digital economy, one of the fastest-growing in Africa, is poised to benefit significantly from the decision. Analysts argue that affordability has always been a key barrier to deeper internet penetration, even as the country boasts one of the largest telecom markets on the continent.
Industry experts warn that without affordable data and call rates, Nigeria risks falling short of its ambitions to become a digital innovation hub. By eliminating the tax, government is sending a strong signal to investors and start-ups that the country is committed to supporting innovation and digital transformation.
“This is an enabling policy shift,” said Chinedu Ekeh, a technology entrepreneur in Abuja. “It will not only support existing consumers but also encourage new users to come online. More people online means more opportunities for digital businesses, e-commerce, fintech, and the wider innovation ecosystem.”
Industry Reactions
Telecommunications operators have welcomed the announcement, though they caution that effective implementation will be key to ensuring that consumers feel the benefits.
“We commend the President for listening to industry concerns,” said a senior executive at one of Nigeria’s largest telecom providers. “Our responsibility now is to work closely with the NCC and other stakeholders to make sure the removal translates into real cost savings for subscribers.”
The NCC has already moved to reassure the public. In its release, the commission confirmed that it would be working with telecom operators, consumer groups, and regulators to ensure transparency in the implementation. “We will monitor closely to ensure the benefits of the removal are fully passed on to Nigerians,” Dr. Maida stated.
Economic Context
The removal comes at a time when Nigerians are grappling with economic headwinds, including high inflation, rising food prices, and the lingering effects of subsidy removals on fuel. Against this backdrop, the elimination of the excise tax is expected to provide much-needed relief, however modest, for households and small businesses alike.
Economists also note that the decision could have broader macroeconomic implications. By reducing the cost of digital access, productivity gains are expected across multiple sectors, from banking and commerce to education and health. Moreover, the move could help accelerate financial inclusion, as millions of Nigerians increasingly rely on mobile phones for payments and financial transactions.
International Perspective
Globally, Nigeria’s step aligns with a growing trend in emerging economies to prioritise digital access over short-term fiscal revenues. Countries such as Kenya, South Africa, and India have faced similar debates over digital taxes, with many concluding that affordability and broad internet access yield greater long-term economic dividends than immediate tax collection.
By removing the levy, Nigeria strengthens its reputation as a leading digital market in Africa. International investors are likely to view the reform as a sign that Nigeria is committed to building a sustainable and consumer-friendly digital economy.
Looking Ahead
While the decision has been widely welcomed, observers caution that further reforms will be needed to address other challenges in the telecom sector. Infrastructure deficits, erratic power supply, and regulatory bottlenecks continue to affect service quality and coverage.
Nevertheless, the removal of the 5% excise duty is seen as a positive step in the right direction. For millions of Nigerians, it represents not only financial relief but also renewed hope that digital connectivity can remain within reach.
As President Tinubu’s administration continues to roll out its economic reform agenda, the telecom tax removal may be remembered as one of the clearest examples of government responding to the voice of the people.
Africa Live News Takeaway: The elimination of the telecom excise tax reflects a policy shift that places people before revenue. It promises relief for consumers, growth for the digital economy, and a stronger case for Nigeria as Africa’s digital powerhouse.
