FG Removes 5% Telecom Tax on Voice and Data Relief for Millions of Nigerians

FG Removes 5% Telecom Tax on Voice and Data Relief for Millions of Nigerians

The Federal Government has finally removed the controversial 5% excise duty on telecommunications services, a move that has been widely welcomed across the industry. This tax, which applied to both voice and data services, had been a burden on telecom operators and subscribers since its introduction in 2022. With its removal, Nigerians can now expect some relief from high communication costs that have affected millions nationwide.

The Nigerian Communications Commission (NCC) confirmed that the excise duty removal forms part of the government’s broader economic reform strategy. The aim is to reduce the cost of doing business and ease inflationary pressure in key sectors like telecommunications. The industry has long argued that the tax was unnecessary, as telecom operators already pay multiple levies at federal, state, and local levels.

Telecom users, especially students, entrepreneurs, and SMEs, are among the biggest beneficiaries of this development. Data consumption has become an essential part of daily life, and the cost of connectivity directly impacts productivity. With the 5% levy gone, Nigerians could see lower data costs and more affordable voice call rates, depending on how quickly operators pass on the savings.

Industry experts say this policy change could stimulate market growth by encouraging more people to reconnect inactive lines and boost data consumption. It could also attract new investors into the Nigerian telecom space, where user demand continues to expand despite economic challenges. The change sends a signal that the government is committed to improving digital inclusion.

Telecom operators such as MTN, Airtel, Globacom, and 9mobile (now T2) have all expressed support for the decision. Many believe the removal of the excise duty will help operators reinvest savings into network expansion and quality improvement. Nigeria’s data traffic has surged in recent years, and operators need more infrastructure to meet the growing demand.

This reform is particularly significant in rural and underserved areas where connectivity remains limited. Lower operational costs for telecom companies mean more resources can be channeled into extending service coverage to remote communities. The Federal Ministry of Communications, Innovation, and Digital Economy has already hinted at new partnerships to accelerate broadband rollout.

From a consumer standpoint, this decision aligns with Nigeria’s digital economy goals. Affordable and reliable connectivity supports education, small businesses, e-commerce, fintech, and e-governance. It also bridges the digital divide that keeps millions disconnected from global opportunities.

Economists see this as a win for both the industry and end users. Removing multiple taxes on telecom services can increase efficiency and encourage competition. It also aligns with global best practices, as many countries are moving away from taxing basic digital services to promote innovation and growth.

In summary, the removal of the 5% telecom tax marks a fresh chapter for Nigeria’s digital economy. It demonstrates a government willing to listen to stakeholders and take decisive steps to make communication more affordable. As telecom operators adjust their pricing strategies, Nigerians can expect a more competitive market and improved service delivery in the coming months.