Tinubu Abolishes 5% Telecom Excise Duty, Ending Controversial Policy Era

President Bola Tinubu has officially abolished the 5% excise duty on telecommunications services, drawing a final curtain on one of the most contested fiscal policies in Nigeria’s recent history. The announcement was made by the Executive Vice Chairman of the Nigerian Communications Commission (NCC), Mr. Aminu Maida, during an interactive session with journalists in Abuja on Tuesday, August 19, 2025.

Maida confirmed that the duty, which had previously been suspended, has now been completely removed under the country’s new tax legislation.
“The excise duty, it was the 5 per cent or so, that is no longer there. Before it was suspended, but now the president has been magnanimous to remove it entirely,” he said. “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.”

A Policy Nigerians Rejected

The 5% telecom excise duty was first introduced in 2022 under former President Muhammadu Buhari’s administration, following the Finance Act 2020. Originally intended to expand government revenue sources beyond oil, the duty extended excise taxation—previously applied to alcohol and tobacco—to the telecom sector.

Spearheaded by the then-Minister of Finance, Budget and National Planning, Zainab Ahmed, the duty was expected to increase government income but quickly met stiff resistance. Telecom operators, industry experts, and consumer rights advocates argued that Nigerians, already paying 7.5% Value Added Tax (VAT) on calls and data, would face an effective 12.5% increase in service costs.

By mid-2022, the House of Representatives joined in rejecting the tax, labeling it “ill-timed” amidst mounting economic hardship. The backlash forced the Buhari administration to suspend its implementation, though the provision remained in law. The controversy lingered into 2023 and 2024 as debates over its potential revival persisted.

Industry Relief and Expert Reactions

With Tinubu’s repeal, the excise duty has now been permanently removed from Nigeria’s tax framework. Telecom operators and consumer groups have welcomed the development, calling it a decisive win for affordability and industry growth.

Mr. Gbenga Adebayo, Chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON), praised the move as a policy correction long overdue.
“Telecom services are no longer a luxury but a necessity. This removal means millions of Nigerians will not be priced out of basic connectivity. It will also free up resources for operators to reinvest in expanding coverage and improving quality of service,” Adebayo said.

The Association of Telecommunications Companies of Nigeria (ATCON) echoed this view, noting that the decision would stimulate innovation and digital expansion, added: “Taxation should never stifle digital growth. President Tinubu has given the industry the space to breathe. This will not only encourage operators but also boost investor confidence in Nigeria’s telecom sector.”

Consumer protection groups also hailed the policy shift. The National Association of Telecoms Subscribers (NATCOMS) member described the abolition as a victory for ordinary Nigerians.
“Our members consistently resisted this tax because it was anti-people,” said. “We commend the president for listening. Nigerians already face inflationary pressures, and scrapping this levy shows sensitivity to the plight of citizens.”

A Policy Shift with Wider Implications

The scrapping of the excise duty is more than just tax relief; it represents a significant policy shift. For years, critics argued that over-taxation of digital services could slow down Nigeria’s ambition of becoming Africa’s leading digital economy.

By permanently ending the controversial levy, Tinubu’s government has not only reduced financial pressure on households but also sent a strong signal to investors that Nigeria is committed to creating an enabling environment for innovation and growth.

As the telecom sector continues to drive connectivity, commerce, and inclusion, the end of the excise duty marks a turning point, showing how public resistance, industry advocacy, and political will can reshape fiscal policy in Nigeria.