President Bola Tinubu has scrapped the controversial 5% excise duty on telecommunications services, a policy reversal aimed at reducing the financial burden on Nigerians and boosting growth in the country’s digital economy.

The Executive Vice-Chairman of the Nigerian Communications Commission (NCC), Aminu Maida, announced the decision during a media briefing in Abuja on Tuesday.

“The 5% excise duty is no longer in effect,” Maida said. “Initially, it was only suspended, but the President has now completely removed it. I was present when the issue was raised, and he firmly said, ‘No, we cannot place this burden on Nigerians.’ That directive has now been captured in the new legislation.”

The scrapped telecoms evy, which applied to mobile voice and data services, had drawn criticism from consumer groups and telecom operators who argued that it would increase the cost of digital access and threaten the viability of businesses already struggling with rising operational expenses.

Recall that Tinubu first suspended the telecoms levy in July 2023 as part of a broader effort to review Nigeria’s tax system and ease multiple levies on businesses and households.

However, the issue resurfaced in October 2024 when the National Assembly proposed reinstating the tax alongside levies on gaming, betting, and lottery services.

With this latest decision, the federal government hopes to improve digital access, strengthen telecom operators, and support Nigeria’s expanding digital economy.

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