At Last, FG Removes 5% Telecoms Tax on Voice, Data Services

Emma Okonji

The federal government has finally removed the five per cent excise duty on telecommunications from the tax reformed bill that was recently passed by President Bola Ahmed Tinubu.

The announcement was made in a statement released yesterday on the official website of the National Orientation Agency (NOA).

According to the statement, “Federal Government of Nigeria has removed the five per cent excise duty on telecommunications services. This tax was originally introduced under the 2020 Finance Act during the administration of former President Muhammadu Buhari but faced strong criticism for its negative impact on businesses and households. In July 2023, shortly after President Bola Tinubu took office, he signed an executive order suspending the five per cent excise duty on telecom services due to its adverse effects. Subsequently, the Nigerian Communications Commission (NCC) confirmed the final elimination of this excise duty, fulfilling President Tinubu’s promise to prioritise the welfare of Nigerians and support the growth of the telecommunications industry. The removal is expected to ease the financial burden on subscribers and stimulate growth in the telecom sector, which is a significant contributor to Nigeria’s GDP and digital economy.”

During a recent media engagement the Executive Vice Chairman of the Nigerian Communications Commission (NCC), Dr. Aminu Maida, also clarified the current administration’s position. He noted that President Bola Ahmed Tinubu did not allow the reintroduced five per cent excise duty to make it into the final version of the tax laws that have now been passed.

Although the spokesperson for telecoms operators, Gbenga Adebayo told THISDAY that telecoms operators were yet to receive any official statement regarding the five per cent telecoms tax removal, he however said such removal was a welcome development to the telecoms sector.

“Telecoms operators are yet to receive any official statement concerning the five per cent telecoms tax removal, but we welcome such tax removal because it will remove the burden of telecoms taxes from the consumers that are at the receiving end, and help the telecoms sector to develop rapidly. It will also remove the burden of collecting and remitting the tax money to government from the telecoms operators that will be responsible for such tax collection,” Adebayo said.

In 2024,  the National Assembly once again proposed the same  five per cent excise duty in the draft of the tax reforms bill. This was essentially a reintroduction of the levy that had previously been set aside under former President Muhammad Buhari.

“The five per cent excise duty on telecoms services was first introduced in the Finance Act of 2020. It was also included in Section 160 of the Draft Nigerian Tax Bill. However, after duly considering submissions from stakeholders, the government removed the tax on telecoms services from the newly enacted Tax Acts signed by the President Bola Ahmed Tinubu. As such, the five per cent excise duty on telecoms has been completely removed from our laws and will not be imposed by government again,” Maida said.