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Tinubu Abolishes 5% Telecom Levy in Landmark Tax Reforms

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Bola Tinubu
Bola Tinubu
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President Bola Ahmed Tinubu has approved the complete removal of the 5 percent excise duty previously imposed on telecommunications services in Nigeria, a decision that the Nigerian Communications Commission (NCC) says will bring immediate relief to millions of subscribers.

Dr. Aminu Maida, Executive Vice-Chairman of the NCC, disclosed this on Tuesday during an interactive session with journalists in Abuja. He explained that while the tax had initially been suspended, Tinubu has now abolished it completely in the new tax reform law.

“The excise duty, it was the 5 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. I was in a room when it was raised, and he said, No, no, no, we cannot put this on Nigerians. I was very pleased when the bills came out and we saw his words were followed through.”

The excise levy was first introduced in 2022 during the Buhari administration and immediately attracted strong public criticism. Tinubu suspended it in July 2023, citing its negative impact on consumers and the economy. With the latest repeal, the president has signaled a broader commitment to reducing financial burdens on Nigerians.

okay.ng reports that the NCC is also rolling out consumer-focused initiatives to strengthen accountability and transparency in the telecom sector. Among them is a public network performance map scheduled for release in September, showing real-time data on download speeds, latency, and reliability across the country.

Dr. Maida further highlighted the commission’s reforms, including the NIN-SIM audit conclusion, resolution of USSD debt disputes, transition to end-user billing, and the launch of a Major Incident Reporting Portal. He stressed that effective corporate governance is central to building a globally competitive Nigerian telecom company.

On consumer complaints, particularly over data depletion, Maida revealed that independent audits of operators’ billing systems showed no deliberate fraud. Instead, issues such as background app activity, device settings, and tariff complexity were found to be major contributors.

Director of Consumer Affairs Bureau, Freda Bruce-Bennett, also offered subscribers practical tips to manage data usage, while Nnenna Ukoha, NCC’s Director of Public Affairs, urged the media to amplify the commission’s consumer protection policies.

Currently, Nigeria has over 172 million active subscribers, including 141 million internet users and 105 million broadband users. With the tax removal, industry experts expect growth in affordability, innovation, and digital inclusion.

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