Nigeria: FG Scraps 5% Telecom Tax, Aims to Ease Burden on Nigerians

In a major policy reversal, the Federal Government has officially revoked the controversial 5% excise tax on telecommunications services, a move poised to bring significant relief to millions of Nigerian mobile users.

The tax, which applied to both voice calls and data, had been a source of widespread contention since its introduction during the previous administration of President Muhammadu Buhari. Industry stakeholders and consumer rights groups had fiercely opposed the levy, arguing it would further inflate the cost of essential services for the average Nigerian.

The Executive Vice Chairman of the Nigerian Communications Commission (NCC), Aminu Maida, confirmed the decision, stating that President Bola Ahmed Tinubu had personally directed the removal of the tax during recent deliberations on the new Finance Act.

This decision comes as welcome news for the over 171 million active telecom subscribers in the country, many of whom have been grappling with a 50% tariff increase implemented earlier this year. The removal of the 5% tax is expected to stabilize prices and make telecom services more accessible and affordable for a large segment of the population.

The government's action is seen as a responsive move to public concerns and a commitment to creating a more business-friendly and consumer-centric environment within the telecommunications sector.