Some relief may have come the way of telecom subscribers in the country following President Bola Tinubu’s decision to scrap the planned five per cent excise duty on telecommunications services.
The move comes at a time when about 172 million active subscribers have been grappling with poor service quality, including data depletion, dropped calls and failed top-ups, alongside a recently approved 50 per cent tariff hike that has boosted revenues for mobile network operators.
While opinions remain divided on whether the removal will translate into cheaper calls and data, the decision was confirmed yesterday by the Executive Vice-Chairman of the Nigerian Communications Commission (NCC), Dr Aminu Maida.
Speaking to journalists in Abuja, Maida explained that the levy, which had previously been suspended, has now been completely abolished under the new tax laws.
“The excise duty, it was the five per cent or so, that is no longer there,” Maida said. “Before it was suspended, but now the president has been magnanimous to remove it entirely.”
The controversial tax was first introduced under the previous administration as part of the 2020 Finance Act to boost government revenue. However, it faced strong opposition from industry stakeholders and the public, who argued that it would raise the cost of services and impose an additional burden on consumers.
In July 2023, President Tinubu signed an executive order suspending the tax, citing concerns about its impact on businesses and households. This latest development marks a definitive end to the policy.
The decision is seen as a fulfilment of President Tinubu’s pledge to prioritise the welfare of Nigerians and foster a more business-friendly environment. The cancellation of the tax is expected to ease cost pressures on subscribers and support the growth of the telecommunications sector, a key driver of the nation’s digital economy.
Reacting to the development, the President of the National Association of Telecom Subscribers of Nigeria (NATCOMs), Chief Deolu Ogunbanjo, described the news as soothing. He stressed that if it had been allowed to stand, telecom operators would still have increased tariffs on calls and data despite the 50 per cent hike granted in January 2025.
Confirming to The Guardian that NATCOMs still has a case at the Federal High Court, Ikoyi, Ogunbanjo said, “The NATCOMs executives will meet to finalise how to withdraw the case from the court. This is a good one for the over 170 million active subscribers in the country.”
The NATCOMs boss explained that with the outright removal from the Finance Act, there would now be price stabilisation, meaning no further tariff adjustments by service providers.
“You know, if the Federal Government had allowed the five per cent, it means there will be additional tariff increase on data, calls by the operators anytime soon, despite the fact that they were gifted 50 per cent hike in January this year.
“The subscribers association is still begging the Nigerian Communications Commission (NCC) to still help review downward the 50 per cent to 35 per cent, which was what we initially agreed to earlier in the year. But, as it is, it is a succour to subscribers. We appreciate Mr President for this gesture,” he stated.
On his part, the Chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON), Gbenga Adebayo, said the industry still awaits the full report to be sure that, “It won’t be that a five per cent was removed from one part but another seven per cent has been added somewhere else.”
However, he said the industry will welcome the outright removal and expressed hope that the much-expected succour comes to the teeming subscribers.
In an earlier message at the weekend during the launch of Nigeria’s first Digital Museum in Lagos, Adebayo had said that service providers were banking on President Bola Tinubu’s upcoming tax reforms to ease the sector’s long-standing burden of multiple levies, which have constrained investment and slowed expansion.
President Tinubu had signed four major tax reform bills into law on June 26, 2025, with implementation set for January 1, 2026. The legislation, collectively known as the “Reform Acts”, consolidates multiple tax laws, abolishes many minor levies, and raises thresholds to relieve small businesses.
“We eagerly await the commencement of the implementation in January 2026. We are confident that the over 56 taxes and levies currently borne by our members across various jurisdictions will soon become a thing of the past.”
The ALTON Chairman described the reforms as a pivotal step toward streamlining Nigeria’s tax system and eliminating the burden of multiple taxation. He highlighted the positive impact on small and medium-sized businesses, noting that the changes will promote entrepreneurship, attract investment, and foster a more business-friendly environment.
Further, at the Abuja interactive meeting, Maida emphasised corporate governance, saying it would be deployed as a tool to strengthen the industry. “Transparent, well-governed companies attract investment and perform better,” he said, adding that the goal was to lay the foundation for a Nigerian telecom company that is wholly owned, well-run and globally competitive.
According to him, while the Nigerian media remains one of the most vibrant in Africa, it continues to grapple with systemic challenges that weaken its effectiveness. He said: “The Nigerian media remains one of the most vibrant in Africa, but it also faces systemic challenges, financial, political, legal, and technological that weaken its effectiveness.
“The government can play a supportive role by granting tax incentives or relief on import duties for newsprint, broadcast equipment, and digital infrastructure.”
The NUJ Executive, led by its Chairman, Comrade Grace Ike, described Soneye as a consummate professional who has distinguished himself with tact and excellence in the communications field. Ike praised Soneye for consistently supporting the union and advancing the interests of journalists both in Abuja and across the country.
“You have always stood with journalists, not only as a media owner but also as a practitioner who understands our struggles. Your advocacy for welfare, training, and ethical reporting has set you apart as an icon in this profession,” Ike added.
The guardian
