In a welcome turn of events, President Bola Tinubu has officially abolished the controversial 5 percent excise levy on telecom services—covering both voice calls and data. The move signals a significant victory for consumers and industry alike, offering a much-needed breathing space for over 170 million Nigerian mobile users who have been grappling with rising charges and mounting service issues. This decision also sets the stage for broader regulatory reform, aimed at boosting digital access, improving service quality, and fostering a healthier telecom sector.
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A Much-Awaited Reversal Brings Respite to Telecom Users
The 5 percent levy first emerged under the previous administration, introduced through the 2020 Finance Act. Business groups and telecom users have long decried the tax as an unnecessary burden that threatened the affordability of essential communication services. Although President Tinubu suspended the levy in mid-2023, it remained unclear whether it would be formally repealed—until now.
This week, Aminu Maida, Executive Vice-Chairman of the Nigerian Communications Commission (NCC), affirmed that President Tinubu has taken definitive action: the excise duty is completely removed. The directive has now been enshrined within the latest tax legislation, bringing an end to months of uncertainty and allowing users and operators alike to plan with more clarity.
For the more than 171 million active subscribers—many of whom have felt the crunch of a recent 50 percent tariff hike, partly influenced by currency devaluation—the news comes as a genuine relief.
What This Means for the Telecommunications Landscape
While the levy’s removal doesn’t guarantee an instant drop in call or data prices, it removes a major cost component that could have continued to push tariffs upward. This gives room for operators to reassess pricing strategies and for regulators to enforce fairer rates.
The NCC sees the development as part of a broader framework to increase digital accessibility and elevate service standards. Among the regulatory measures moving forward are:
- Centralisation of billing via end-user platforms, intended to bring clarity and prevent arbitrary charges.
- Implementation of stricter service standards, including expanded oversight of telecom tower operators to ensure consistent network quality and reliability.
Consumer advocates are optimistic, although cautious. Deolu Ogunbanjo, President of the National Association of Telecoms Subscribers of Nigeria (NATCOMs), described the decision as a “soothing” reprieve. He also hinted that with this clarity, the group may withdraw its legal challenge concerning the levy.
Meanwhile, Gbenga Adebayo, chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON), welcomed the development but warned against the emergence of replacement levies under different names—urging vigilance from regulators and the public alike.
Broader Implications: Towards a Robust, Consumer-Friendly Telecom Sector
This decision comes at a critical juncture. In June 2025, President Tinubu signed four sweeping tax reform bills into law, intended to reduce bureaucratic complexity, eliminate redundant taxes, and improve ease of doing business. Implementation is expected by January 2026.
The abrogation of the telecom levy aligns with that vision, helping to clear away layers of regulation and ensuring the telecom sector remains a driver of Nigeria’s growing digital economy.
At a media briefing in Abuja, Aminu Maida reiterated the NCC’s commitment to stronger corporate governance as a tool for attracting investment. He highlighted ongoing initiatives such as:
- NIN-SIM audit completion
- Resolution of USSD debt disputes
- Transition to consumer-centric billing
- Launch of a Major Incident Reporting Platform
These efforts, paired with infrastructure investments, aim to deliver real-world improvements in network performance and accountability.
Still, telecommunications subscribers have voiced frustration over service quality. Reports of dropped calls, depleted data, failed top-ups, and sluggish customer support continue to dog the sector. Critics say the regulator must go beyond high-level reform to enforce tangible improvements on the ground.
Recognising this, the NCC has intensified collaborations with the Central Bank of Nigeria (CBN) and banking institutions to address top-up failures—setting the stage for a more reliable transaction framework moving forward.
Sustaining Momentum for Affordable Connectivity
The repeal of the 5 percent telecom levy is undoubtedly a step in the right direction—one that reaffirms the government’s responsiveness to consumer pain points and its commitment to fostering a digital-friendly environment.
As we move forward, the pressing task will be ensuring that this policy change translates into meaningful consumer relief. Awareness campaigns, transparent billing practices, and adherence to quality benchmarks must remain central in the telecom ecosystem.
Telecom operators, regulators, and civil society should see this moment as an opportunity—not just to remove a levy, but to rewrite the script for Nigeria’s digital future: where affordability, reliability, and innovation go hand in hand.
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