Tinubu Abolishes 5% Telecom Excise Duty in New Tax Law – NCC

Abuja, Nigeria–President Bola Tinubu has officially removed the five per cent excise duty on telecommunications services as part of sweeping reforms under Nigeria’s new tax law, the Nigerian Communications Commission (NCC) has confirmed.

Speaking during an interactive session with journalists in Abuja on Tuesday, the Executive Vice-Chairman of the NCC, Dr. Aminu Maida, said the levy, initially introduced in 2022 but suspended last year, has now been completely eliminated.

“The excise duty yes, the five per cent is no longer applicable,” Maida stated. “It was previously suspended, but the President has now removed it entirely. I recall being in a meeting when the issue was raised, and the President was clear: ‘No, we cannot impose this on Nigerians.’ I was pleased to see that reflected in the new tax legislation.”

The now-defunct levy was part of a broader fiscal framework proposed under the bill titled A Bill for an Act to Repeal Certain Acts on Taxation and Consolidate the Legal Frameworks relating to Taxation and Enact the Nigeria Tax Act. The excise duty, introduced during the administration of former President Muhammadu Buhari, faced significant public and industry backlash, leading to its suspension by President Tinubu in July 2023 over concerns about its inflationary impact and pressure on consumers.

Dr. Maida noted that the removal of the levy would bring welcome relief to subscribers while supporting growth in Nigeria’s telecom industry, which remains a key driver of economic activity and digital inclusion.

He emphasized that the NCC is pursuing a reform agenda grounded in transparency, consumer protection, and accountability. This includes a shift toward regulatory models that integrate behavioural economics, aiming to empower consumers through better access to information.

One such initiative, Maida revealed, is a public network performance map expected to launch in September. The platform will provide independent data on download speeds, latency, and other quality metrics. Additionally, the commission will release quarterly reports based on user-generated data to enhance accountability across the telecom ecosystem—including mobile network operators and infrastructure providers.

“Corporate governance will be a major lever in building a resilient sector,” Maida added. “Well-governed, transparent companies not only perform better but also attract investment. Our goal is to build a globally competitive, fully Nigerian-owned telecom company.”

Maida also cited recent regulatory milestones as evidence of progress, including the conclusion of the NIN-SIM verification audit, resolution of USSD debt disputes, implementation of end-user billing systems, and the launch of a Major Incident Reporting Portal.

“These are all steps toward a more accountable and consumer-centric telecom sector,” he said.

By Taiwo Olatinwo/ August 19,2025