FG Revokes 5% Excise Duty on Telecom Voice and Data Services

The Federal Government has officially removed the 5% excise duty previously imposed on telecommunication services, including voice calls and data. The directive came from President Bola Tinubu during the review of the recently passed Finance Act.


This tax, introduced under the Finance Act of 2020 during the administration of former President Muhammadu Buhari, had come under intense criticism from consumer groups, telecommunications operators, and industry stakeholders for increasing the cost of voice and internet services.


According to the Executive Vice Chairman of the Nigerian Communications Commission (NCC), Aminu Maida, over 171 million active telecom subscribers stand to benefit from the removal. Maida explained that the President’s order will ease cost pressures amid existing hikes in tariff and operating costs in the sector.


The excise duty had been widely seen as placing additional burden on consumers, especially in a climate of inflation and rising telecom infrastructure expenses. Many had warned that the tax could reduce affordability and access to digital services.


Telecom operators have welcomed the decision, though some note that the benefit will depend on whether they pass on cost savings to end-users. The NCC has urged companies to adjust pricing accordingly so that subscribers truly feel the effect of the tax waiver.

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