In a move widely celebrated by millions of Nigerians, the Federal Government has officially scrapped the controversial five per cent telecom tax previously imposed on telecommunications services.
The policy shift, announced on Thursday by the National Orientation Agency (NOA), is expected to ease the financial burden on households and businesses that rely heavily on voice and data services.
The Executive Vice Chairman of the Nigerian Communications Commission (NCC), Dr. Aminu Maida, confirmed that President Bola Tinubu ordered the removal of the telecom tax levy during deliberations on the Finance Act.
According to him, the directive was designed to relieve citizens from rising costs while strengthening Nigeria’s fast-growing digital economy.
“This development is a direct response to the economic challenges faced by Nigerians.
It is expected to bring relief to over 171 million active telecom users across the country,” Maida said, stressing that the move aligns with the President’s broader agenda of reducing multiple taxation and enhancing competitiveness in the digital sector.
The excise duty, introduced in 2022 under former President Muhammadu Buhari, was applied to both voice calls and data subscriptions.
The measure was justified at the time as part of efforts to diversify government revenue sources amid declining oil earnings.
The Ministry of Finance defended the telecom tax as consistent with global taxation practices.
However, the policy was met with stiff resistance from stakeholders, including consumer rights groups and telecom operators under the Association of Licensed Telecom Operators of Nigeria (ALTON).
They argued that the duty was counterproductive in a country already known for high telecom tax compared to other sub-Saharan African markets.
Industry leaders warned that the telecom tax levy would stifle growth, discourage investment, and further limit access to digital services at a time when Nigeria was pushing for greater financial inclusion and technology-driven development.
For ordinary Nigerians, the excise duty translated into higher communication costs.
Many users experienced a sharp rise in tariffs, with some reports indicating an increase of nearly 50 per cent in certain services earlier in 2025.
Combined with inflationary pressures, the telecom tax levy deepened the strain on households and small businesses struggling to cope with rising energy, food, and transport costs.
“I used to recharge N1,000 for calls and data every week, but after the telecom tax and price hikes, it could hardly last three days,” lamented Lagos-based trader, Grace Ibekwe.
“This removal means a lot for people like me who depend on affordable communication to run daily business.”
For small-scale entrepreneurs, especially those relying on e-commerce, digital payments, and social media marketing, the telecom tax was an additional obstacle in keeping their businesses afloat.
Analysts say the reversal will improve productivity by making digital tools more accessible and affordable.
The removal of the telecom tax levy has been hailed as a bold step in restoring confidence in the telecom sector.
With over 171 million active users, Nigeria boasts one of the largest telecom markets in Africa, contributing significantly to GDP growth and technological innovation.
ALTON described the development as a “policy correction” that acknowledges the sector’s role in national development.
“The scrapping of the telecom tax provides an enabling environment for investment, innovation, and job creation,” said an official of the group.
Experts also predict that the move will boost investor confidence at a time when Nigeria is looking to attract more foreign capital into its technology and telecommunications industries.
Reduced taxation, they argue, makes Nigeria a more competitive destination for digital infrastructure projects and partnerships.
The decision also reflects Tinubu’s commitment to advancing Nigeria’s digital transformation agenda. Telecommunications remain central to financial inclusion, education, and healthcare delivery, particularly in rural and underserved communities.
By lowering the cost of access, the government is indirectly promoting digital literacy and innovation.
“This is more than just tax relief. It is a policy decision that strengthens Nigeria’s ability to compete in the digital economy,” explained Abuja-based economist, Dr. Ibrahim Lawal.
“With the right investments and consumer-friendly policies, the telecom industry can continue to drive inclusive growth.”
Critics, however, caution that the government must balance consumer relief with its need for revenue.
The scrapped excise duty was initially expected to generate billions of naira for the federal purse.
With debt servicing consuming a large portion of government revenues, Nigeria faces a delicate challenge of meeting fiscal targets without overburdening citizens.
Analysts suggest that rather than leaning on consumption taxes that hurt consumers, the government should focus on expanding the telecom tax base, tackling leakages, and leveraging digital technology to improve efficiency in revenue collection.
Across social media platforms, Nigerians have welcomed the announcement with excitement. Many described the removal of the telecom tax as a rare example of government listening to the voice of the people.
“Finally, a decision that favors the masses,” one user wrote on X (formerly Twitter). Others expressed hope that telecom operators would immediately adjust tariffs downward to reflect the tax removal.
For now, Nigerians are optimistic that the policy will bring genuine financial relief, especially as the country grapples with inflation and other economic challenges.
The bigger test, observers say, lies in implementation and monitoring.
The government will need to ensure that telecom operators pass the benefits of the tax removal to consumers through lower tariffs.
Regulatory agencies like the NCC must remain proactive in ensuring transparency and accountability across the sector.
As Nigeria continues to chart its path toward economic recovery, the decision to abolish the 5% telecom excise duty is being viewed as a strong signal that the government is prioritizing citizens’ welfare and fostering an enabling environment for growth.
For millions of users, it is not just a policy announcement—it is a welcome relief that may redefine their daily digital experiences.