The 5 percent duty had been a subject of controversy among industry stakeholders including the media and consumer advocacy groups.

Reprieve has come the way of telecom consumers and businesses in Nigeria as President Bola Tinubu has abolished the controversial 5% excise duty on telecommunications services.

Executive Vice-Chairman of the Nigerian Communications Commission (NCC), Aminu Maida, disclosed this during a media briefing in Abuja on Tuesday; stressing that the excise levy which was suspended in 2023 has now been officially removed under the revised national tax laws.

“The 5% excise duty is no longer in effect,” Maida stated.

“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,” he gushed in excitement.

The 5 percent duty had been a subject of controversy among industry stakeholders including the media and consumer advocacy groups. The Association of Telecommunications Companies of Nigeria (ATCON) had argued that reinstating the excise duty would undermine service affordability and accessibility, particularly at a time when reliable internet access is increasingly vital to Nigeria’s economy.

Stakeholders contended that such duty would increase the cost of digital access and threaten the viability of telecom operators already grappling with high operational costs.

President Tinubu first suspended the tax in July 2023 as part of a broader fiscal policy overhaul aimed at mitigating the impact of multiple tax burdens on businesses and households. The suspension came through a series of executive orders signed shortly after he assumed office.

However, the issue resurfaced in October 2024, when the National Assembly proposed reinstating the tax as part of broader revenue-generating measures, which also included levies on gaming, betting, and lottery services.