President Bola Tinubu Abolishes 5% Telecom Excise Duty

On Tuesday, August 19, 2025, President Bola Ahmed Tinubu officially ordered the complete removal of the 5 percent excise duty on telecommunications services across Nigeria, a move that is expected to provide immediate relief for millions of mobile phone users and internet subscribers nationwide.

The announcement was made in Abuja by the Executive Vice Chairman of the Nigerian Communications Commission (NCC), Dr. Aminu Maida, during a media briefing. He explained that although the tax was earlier suspended, President Tinubu has now fully scrapped it as part of his administration’s ongoing tax reform plan.

According to Maida, the president rejected any attempt to reintroduce the levy, insisting that Nigerians should not be further burdened. He commended the decision, noting that the abolition of the excise duty has now been enshrined in new legislation demonstrating President Tinubu’s commitment to easing economic pressure on citizens.

The excise charge was first introduced under the previous administration, sparking nationwide criticism from stakeholders who argued that it stifled businesses and hurt consumers.

President Tinubu initially suspended the levy but has now abolished it entirely, signaling his determination to lower the cost of digital access while boosting economic growth.

Alongside the tax reform, the NCC unveiled a series of consumer-driven initiatives to further strengthen service delivery in the telecom sector. One of the highlights is a public network performance map, set to launch in September, which will allow subscribers to monitor real-time internet speed, reliability, and latency across the country.

Other reforms outlined by the NCC include the conclusion of the National Identification Number (NIN)-SIM audit, the resolution of lingering USSD debt issues, and the introduction of a Major Incident Reporting Portal to improve industry transparency and accountability.

Responding to recurring complaints about fast data depletion, Maida revealed that independent audits of telecom billing systems showed no evidence of fraud. Instead, factors such as mobile app background usage, device settings, and complex tariff plans were identified as the main causes. To address this, the NCC’s Consumer Affairs Bureau shared practical tips to help subscribers manage data more effectively, while the Public Affairs Directorate called on the media to amplify awareness of consumer protection initiatives.

Nigeria currently boasts over 172 million active telecom subscribers, including 141 million internet users and 105 million broadband subscribers. Industry analysts predict that with the removal of the telecom tax, digital services will become more affordable, thereby expanding access, driving innovation, and positioning Nigeria more competitively in the global digital economy.