The Federal Government has revoked the initial 5% tax duty tax imposed on telecommunications services, including voice calls and data usage.
This was announced by the National Orientation Agency on Thursday on its official X (formerly Twitter) page.
According to the article, Dr. Aminu Maida, the Executive Vice Chairman of the Nigerian Communications Commission, revealed that during talks on the recently enacted Finance Act, President Bola Tinubu ordered the tax to be removed.
The NCC head stated that millions of mobile consumers nationwide should experience less financial strain as a result of the action.
Maida went on to say that the President’s action was intended to encourage the digital economy and avoid putting citizens under further financial burden.
“The development is expected to bring relief to over 171 million active telecommunication users across the country, many of whom have faced a 50% tariff increase implemented earlier this year,” he added.
The telecommunications fee was reportedly implemented during the former President Muhammadu Buhari’s government and applies to both voice calls and data subscriptions.
The 5% excise duty which was first announced in 2022 was widely criticized by both telecommunication operators and consumer rights groups, who raised concerns and warned that it would worsen the financial burden on Nigerians amid rising living costs.
The administration then used this justification as part of their attempt to increase revenue collection in the face of declining oil earnings.
According to the Ministry of Finance at the time, the fee was consistent with international taxing techniques.
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