The Federal Government has officially revoked the five per cent excise tax imposed on voice calls, text messages, and data services, following a directive by President Bola Ahmed Tinubu during recent deliberations on the Finance Act.
The decision, announced on Thursday in Abuja, comes after months of public concern over rising costs of telecommunication services across the country. With over 171 million active subscribers, Nigeria’s telecom sector is one of the largest in Africa, and the removal of the levy is expected to ease the financial burden on consumers who have faced steep tariff increases in recent months.
According to government officials, the President’s directive was guided by the need to reduce the pressure of multiple taxation on both telecom operators and subscribers. Industry experts had previously warned that the excise duty could slow down digital penetration, undermine the federal government’s broadband expansion drive, and further strain household incomes amid high inflation.
Telecom operators have welcomed the move, describing it as a positive step towards ensuring affordability and sustaining growth in the sector. The Association of Licensed Telecom Operators of Nigeria (ALTON) noted that the removal of the excise duty would improve access to digital services, encourage investment in infrastructure, and support Nigeria’s long-term digital economy agenda.
The Federal Government reaffirmed its commitment to supporting policies that promote economic growth while protecting citizens from excessive tax burdens. Relevant agencies, including the Federal Inland Revenue Service (FIRS) and the Ministry of Communications, Innovation and Digital Economy, have been directed to implement the policy change with immediate effect.
Analysts believe the revocation will provide much-needed relief to millions of Nigerians who rely heavily on mobile and internet services for business, education, and daily communication.
