President Bola Tinubu has permanently eliminated the 5% excise duty on telecommunications services, a move confirmed by the Executive Vice-Chairman of the Nigerian Communications Commission (NCC), Dr. Aminu Maida.
Though the tax had already been suspended in July 2023, it has now been officially repealed under new tax legislation designed to ease the financial burden on consumers and promote economic growth.
Initially introduced in 2022 under former President Muhammadu Buhari, the excise duty was widely criticized for its potential impact on telecom users and the broader economy.
Tinubu’s administration, prioritizing tax reform and digital accessibility, has now removed it entirely. According to Maida, the President was firm in his stance that such costs should not be passed on to Nigerians.
The decision is part of a broader tax overhaul aimed at modernizing Nigeria’s fiscal policies. For the telecommunications industry—central to the country’s digital transformation—the repeal signals relief for subscribers and an opportunity for renewed sector growth.
Maida emphasized the NCC’s commitment to ensuring transparency, improving consumer protection, and fostering accountability through various ongoing reforms.
Among the initiatives underway is a new public network map set to launch in September, which will independently assess service quality across the country.
The NCC will also begin publishing quarterly performance reports based on user data, strengthening oversight of operators and infrastructure providers. These measures are complemented by a push for better corporate governance within the industry to attract investment and raise performance standards.
Policy updates are also on the horizon. Maida acknowledged that Nigeria’s current telecommunications framework, last revised in 2000, no longer aligns with the demands of emerging technologies such as artificial intelligence, the Internet of Things, and remote sensing—areas that now require strategic regulatory attention.
While addressing concerns over call tariffs and billing issues, Maida noted that competition in the telecom market has helped keep voice call rates stable, currently averaging between N18 and N19 per minute—down from N50 in the early 2000s.
He also responded to public frustration over failed airtime recharges and rapid data depletion, attributing most problems to device settings and tariff complexity rather than intentional misconduct by service providers.
An NCC-CBN task force is now overseeing a new framework for mobile recharges, and independent audits of billing systems are ongoing.
Freda Bruce-Bennett, Director of the Consumer Affairs Bureau, offered practical advice to users on managing data consumption more effectively, recommending steps like turning off video autoplay, deleting unused apps, and maximizing Wi-Fi use.
She reported that Nigeria currently has 172 million active mobile lines, 141 million internet users, and 105 million broadband users, translating to an internet penetration rate of 81.9%.
Nnenna Ukoha, NCC’s Director of Public Affairs, encouraged media outlets to play a vital role in informing the public about these reforms.
“You are the bridge between our policies and the people,” she said, underscoring the importance of clear communication in shaping a more responsive digital ecosystem.
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