In an effort to relieve financial strain on firms and consumers in Nigeria's digital economy, President Bola Tinubu has permanently eliminated the contentious 5% excise tax on telecom services.

During a media event in Abuja on Tuesday, Aminu Maida, the Executive Vice Chairman of the Nigerian Communications Commission (NCC), announced the news.

According to Maida, the excise fee, which was first suspended in 2023, has now been formally eliminated due to updated national tax legislation.

“The 5% excise duty is no longer in effect,” Maida stated.

“Initially, it was only suspended, but the President has now permanently removed it. I was present when the issue was raised, and he firmly stated, ‘No, we cannot place this burden on Nigerians.’ I was pleased to see that this directive was upheld in the new legislation.”

Both consumer advocacy organisations and industry stakeholders strongly opposed the duty, which was imposed on mobile voice and data services, claiming it would increase the price of digital access and jeopardise the survival of telecom operators already struggling with exorbitant operating costs.

In order to lessen the impact of numerous tax burdens on consumers and businesses, President Tinubu initially suspended the tax in July 2023 as part of a larger fiscal policy change. Shortly after taking office, he signed a number of executive orders that resulted in the suspension.

Restoring the excise duty would impair service affordability and impede sector growth, according to the Association of Telecommunications Companies of Nigeria (ATCON), especially at a time when dependable internet access is becoming increasingly important to Nigeria's economy.

The issue was raised again in October 2024 when the National Assembly proposed reinstating it as part of larger revenue-generating measures that also included levies on gaming, betting, and lottery services.