President Tinubu Orders Removal Of 5% Telecom Excise Tax To Ease Burden On Millions Of Mobile Phone Subscribers

 

The Federal Government has officially revoked the five percent excise tax earlier placed on telecommunications services, marking a major policy reversal that has been welcomed by consumer groups, industry stakeholders and millions of mobile users across Nigeria. This decision is expected to ease the rising cost of living, particularly for households that depend heavily on mobile phones and internet data for work, education and daily communication.

President Bola Ahmed Tinubu, according to the Nigerian Communications Commission (NCC), ordered the removal of the tax after deliberations on the recently enacted Finance Act. Aminu Maida, the Executive Vice Chairman of the NCC, explained that the decision followed a recognition that telecom services had already witnessed significant cost pressures this year and that an additional tax burden would have deepened the financial strain on citizens.

Telecommunication operators had previously raised tariffs by as much as 50 percent, citing inflation, high operating costs and foreign exchange challenges. The introduction of an excise duty on both voice calls and data, which was conceived during the administration of former President Muhammadu Buhari, was widely criticised from the outset. Consumer protection groups argued that the levy unfairly targeted ordinary Nigerians who rely on mobile services as their most affordable means of accessing information and keeping in touch with loved ones.

The criticism was not limited to users alone. Industry players repeatedly warned that the excise tax would stifle investment in the sector and reduce the capacity of telecom companies to expand coverage. With Nigeria still grappling with digital divides between rural and urban communities, operators stressed that additional tax obligations would slow the pace of broadband penetration and undermine the government’s own digital economy agenda.

President Tinubu’s administration appears to have listened to these concerns. According to Maida, the government took a holistic view of the telecom industry’s contribution to national development and concluded that the sector, which already accounts for more than 13 percent of Nigeria’s Gross Domestic Product, should be supported rather than weighed down by taxes that discourage growth.

The announcement comes as a significant relief to Nigeria’s more than 171 million active telecom subscribers. Mobile penetration has become a vital lifeline for citizens, from banking and financial transactions carried out via mobile apps, to access to health information, e-learning opportunities and small business operations driven by social media. Any move that reduces cost barriers is expected to have immediate social and economic benefits.

Civil society organizations have welcomed the development. The National Association of Telecoms Subscribers (NATCOMS) described the policy shift as timely, pointing out that the removal of the levy will help millions of low-income users maintain connectivity. The group noted that communication services should be seen as an essential need similar to electricity and water, and should therefore not be treated as a luxury for taxation purposes.

Analysts also see the policy reversal as a signal of the administration’s willingness to respond to public sentiment and address the challenges of rising living costs. With inflation climbing above 30 percent, households have been forced to make tough choices on spending. Data bundles and call credits are among the expenses that Nigerians frequently complain about, and the tax removal could translate into small but significant savings for families and businesses already struggling with shrinking incomes.

Telecom operators, while applauding the decision, have urged the government to follow up with broader reforms to stabilize the sector. They called for interventions that would ease access to foreign exchange for equipment importation, reduce multiple taxation by state agencies and enhance regulatory clarity. Industry leaders argue that such steps would attract fresh investment, improve service quality and ensure that Nigeria maintains its leadership role as Africa’s largest telecom market.

The government, for its part, has pledged to work closely with regulators and operators to strengthen digital infrastructure. Officials say the long-term goal is to ensure affordable, reliable and accessible telecom services for every Nigerian, a vision that ties directly into national objectives on financial inclusion, innovation and youth empowerment.

Despite the celebratory mood, some experts caution that the removal of the excise tax alone will not completely solve the affordability challenge. They point to the ongoing issues of energy costs, currency depreciation and insecurity that increase operational expenses for telecom firms. Nonetheless, the policy shift is seen as a strong starting point, and one that demonstrates a more consumer-focused approach by the current administration.

For millions of Nigerians who have endured higher tariffs and limited options for cutting communication expenses, the Federal Government’s move is a welcome relief. As telecom services continue to form the backbone of commerce, education and social interaction in the country, the removal of the excise duty represents not just a policy change, but also a reprieve that reinforces the role of connectivity as a right rather than a privilege.