The move comes as about 172 million active users continue to struggle with poor service quality—ranging from dropped calls to rapid data depletion—alongside a recent 50 per cent tariff hike that has significantly boosted operator revenues.
Confirming the development in Abuja, the Executive Vice-Chairman of the Nigerian Communications Commission (NCC), Dr. Aminu Maida, said the levy, earlier suspended, has now been completely removed under new tax reforms.
“The excise duty … is no longer there. Before, it was suspended, but now the president has been magnanimous to remove it entirely,” Maida stated.
The tax was first introduced under the 2020 Finance Act by the previous administration but faced backlash from stakeholders who warned it would raise call and data costs, worsening consumer hardship. President Tinubu initially suspended the duty in July 2023 before formally scrapping it through the Tax Reform Acts, signed into law on June 26, 2025, and set to take effect from January 2026.
Reacting, the President of the National Association of Telecom Subscribers of Nigeria (NATCOMs), Chief Deolu Ogunbanjo, described the decision as “soothing news” for subscribers. He disclosed that NATCOMs would now withdraw its pending legal challenge against the tax at the Federal High Court.
“With this removal, there will be price stabilisation. If government had allowed the five per cent, it would have triggered another tariff increase despite the 50 per cent hike in January,” he said.
The Chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON), Gbenga Adebayo, welcomed the policy but cautioned that the industry would study the details to ensure no hidden levies replace the scrapped duty. He noted that Tinubu’s broader tax reforms—which aim to reduce Nigeria’s over 56 multiple levies—could significantly ease the sector’s long-standing challenges.
Meanwhile, subscribers’ groups, including ATCIS-Nigeria and NATCOMs, criticised telecom operators and the NCC for poor quality of service, citing frequent call failures, unsuccessful recharges, and worsening network performance despite rising tariffs.
In response, Maida said the NCC had revised its Quality of Service (QoS) guidelines and partnered with the Central Bank of Nigeria (CBN) and commercial banks to resolve failed transactions. He also announced upcoming investments in infrastructure and stricter oversight of operators and tower companies.
The NCC boss added that as Nigeria shifts towards a digital economy, policies will be revised to reflect new realities such as AI, IoT, and 5G technologies, while subscribers are urged to adopt smart data management practices.
The latest decision is widely seen as part of President Tinubu’s efforts to ease cost pressures, strengthen investor confidence, and create a more business-friendly environment for Nigeria’s digital economy.
