President Tinubu Removes 5% Excise Duty on Telecom Services to Ease Cost for Subscribers

The Executive Vice-Chairman of the Nigerian Communications Commission (NCC), Dr. Aminu Maida, has confirmed that President Bola Tinubu has fully removed the 5 per cent excise duty on telecommunications services in the new tax laws, a move expected to reduce cost pressures for subscribers.

Speaking with journalists in Abuja on Tuesday, Maida explained that the levy, which was initially suspended, has now been completely scrapped.

“The excise duty, it was the 5 per cent or so, that is no longer there,” he 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 five per cent excise duty formed part of a broader tax reform initiative 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 to Provide for Taxation of Income, Transactions, and Instruments, and Related Matters.”

The proposed tax faced significant opposition since its introduction in 2022 under former President Muhammadu Buhari, leading to its suspension in July 2023 by President Tinubu, who cited concerns about its impact on consumers and the economy.

Maida said the removal of the levy would support wider growth in Nigeria’s telecom sector, which is central to economic activity and digital inclusion. He also highlighted ongoing NCC reforms aimed at transparency, accountability, and improved consumer protection.

Among the initiatives, Maida revealed plans to release a public map of network performance in September, showing independent data on download speeds, latency, and other quality indicators. He added that quarterly network performance reports based on user data will also be published, extending accountability to both mobile operators and infrastructure providers.

Corporate governance, Maida said, is a key tool for strengthening the sector. “Transparent, well-governed companies attract investment and perform better,” he said, stressing the goal of building a wholly Nigerian-owned, well-run, and globally competitive telecom company.

He pointed to reforms such as the conclusion of the NIN-SIM audit, settlement of USSD debt disputes, transition to end-user billing, and the launch of a Major Incident Reporting Portal as evidence of progress.

Maida noted that Nigeria’s telecom policy of 2000, which focused on breaking monopoly and introducing competition, had achieved its purpose but now required revision to reflect the importance of internet connectivity and emerging technologies like AI, IoT, and augmented reality.

He highlighted that competition remains key to keeping call tariffs low, with current maximum rates around N18–N19 per minute compared to N50 per minute in the early 2000s.

Addressing consumer concerns about failed electronic top-ups, Maida said a joint NCC-CBN task force developed a framework to standardise recharge processes. Audit investigations showed no systemic manipulation of consumer data, attributing complaints to factors such as background app usage, device settings, and complex tariff structures.

“We are not trying to punish anyone,” he said. “We want the industry to grow so consumers are happier, operators perform better, and the government benefits from a broader tax base.”

NCC Director of Consumer Affairs, Freda Bruce-Bennett, offered practical tips for managing data, including disabling autoplay on social media, limiting background data, deleting unused apps, activating data-saving modes, and using Wi-Fi where possible.

She noted that Nigeria has 172 million active telephone subscribers, with 141 million internet users (81.9 per cent) and 105 million broadband users.

NCC Director of Public Affairs, Nnenna Ukoha, stressed the media’s role in relaying regulatory efforts to the public, urging journalists to collaborate closely with the commission.