Nigerian Government Removes 5% Tax on Call & Data Service

The Federal Government of Nigeria has relieved millions of Nigerians who depend on internet data and mobile calls by removing the 5% excise tax on telecommunications services.

The National Orientation Agency (NOA) made the news Thursday in a statement posted on X.

Both voice calls and data services were subject to the tax, which was implemented during the government of former President Muhammadu Buhari.

Telecom companies and consumer rights activists criticised it, claiming it would put further strain on citizens already dealing with growing expenses.

Speaking on the development, Aminu Maida, the Executive Vice Chairman of the Nigerian Communications Commission (NCC), affirmed that during talks on the recently passed Finance Act, President Bola Tinubu gave the order to remove the charge.

“This is an obvious indication that the government is paying attention to Nigerians’ concerns and is dedicated to lowering the cost of communication,” Maida said.

According to the head of the NCC, the action should relieve financial strain on the nation’s millions of mobile customers.

“The President’s intervention was intended to support the digital economy and avoid further financial strain on citizens,” Maida continued. 

Over 171 million active telecom subscribers nationwide, many of whom had to deal with a 50% pricing increase earlier this year, are anticipated to benefit from the development, he continued.

When the 5% excise charge was first introduced in 2022, telecom companies and consumer advocacy organisations strongly objected, arguing that it would make Nigerians’ financial situation worse due to growing living expenses.

In order to increase revenue creation in the face of declining oil earnings, the government provided a rationale at the time.

At the time, the Ministry of Finance maintained that the levy was consistent with international taxation standards.

However, the strategy will be ineffective, according to telecom providers who are part of the Association of Licensed Telecom providers of Nigeria.

Nigeria already has one of the highest tax loads on the sub-Saharan African telecom industry, according to the ALTON.