Kiin360 Blog Business FG Scraps 5% Excise Duty on Telecom Services, Offers Relief to Subscribers
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FG Scraps 5% Excise Duty on Telecom Services, Offers Relief to Subscribers

Abuja | September 12, 2025 — The Federal Government has abolished the 5 percent excise duty previously imposed on telecommunications services, including voice calls and data usage, in a move expected to bring relief to millions of Nigerian subscribers.

The National Orientation Agency (NOA) announced the development on Thursday via its official X (formerly Twitter) page, stating that the decision followed President Bola Tinubu’s directive during deliberations on the recently enacted Finance Act.

Confirming the directive, the Executive Vice Chairman of the Nigerian Communications Commission (NCC), Dr. Aminu Maida, said the removal of the tax reflects the administration’s commitment to easing the financial burden on citizens and fostering growth in the telecommunications sector.

The 5 percent excise duty, introduced under the previous administration, had been widely criticized by industry stakeholders and consumer groups who argued that it would stifle innovation, increase the cost of telecom services, and worsen inflationary pressures on households.

Analysts say scrapping the levy will encourage greater digital inclusion, expand access to internet services, and improve the operating environment for telecom companies. However, they cautioned that the government must explore alternative strategies to shore up revenues without undermining critical sectors of the economy.

With Nigeria’s telecom industry serving as a backbone for commerce, education, and governance, the policy shift is expected to further drive investments in infrastructure and enhance the country’s digital economy agenda.

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