FG Scraps 5% Excise Duty on Telecom Services to Ease Economic Burden

The Federal Government has abolished the 5% excise duty previously imposed on telecommunications services, including voice calls and data subscriptions.

The decision, announced on Thursday via the official X (formerly Twitter) handle of the National Orientation Agency (NOA), was confirmed by the Executive Vice Chairman of the Nigerian Communications Commission (NCC), Dr. Aminu Maida.

According to Maida, President Bola Ahmed Tinubu directed the removal of the levy during deliberations on the newly enacted Finance Act, as part of broader economic reforms aimed at reducing the financial strain on Nigerians.

"The removal of the tax is expected to bring relief to over 171 million active telecom subscribers nationwide, many of whom have already been impacted by a 50% increase in service tariffs earlier this year,” Maida said.

Maida stressed that the policy shift reflects President Tinubu’s commitment to easing economic hardship while encouraging growth in Nigeria’s digital economy. The telecom sector, which contributes significantly to the nation’s GDP, is projected to expand further with reduced costs for end-users.

The now-abolished excise duty was introduced under the administration of former President Muhammadu Buhari and applied to both voice and data services. Its removal is expected to improve affordability and widen access to mobile connectivity, especially for low- and middle-income users.

Industry analysts say the move could also strengthen investor confidence in the telecommunications sector while aligning with government efforts to expand broadband penetration and digital inclusion nationwide.