The Federal Government has scrapped the 5 per cent excise duty on telecommunications services, a move expected to reduce costs for millions of Nigerian subscribers.
The Executive Vice-Chairman of the Nigerian Communications Commission (NCC), Dr. Aminu Maida, confirmed the development during an interactive session with journalists in Abuja on Tuesday.
“The excise duty, it was the 5 per cent or so, that is no longer there,” Maida said.
“Before it was suspended, but now the president has been magnanimous to remove it entirely. I was very pleased when the bills came out and we saw his words were followed through.”
The tax was initially introduced in 2022 under former President Muhammadu Buhari but suspended in July 2023 by President Tinubu following strong opposition from consumers and industry stakeholders.
Part of New Tax Reforms
The duty was part of a broader tax reform bill titled: “A Bill for an Act to Repeal Certain Acts on Taxation and Consolidate the Legal Frameworks relating to Taxation and Enact the Nigeria Tax Act.”
Critics argued that the levy would increase call and data costs, deepen inflationary pressures, and discourage digital adoption. Its removal is now being hailed as a consumer-friendly reform.
Relief for Telecom Subscribers
With Nigeria’s telecom sector at the heart of economic growth and digital inclusion, Maida said eliminating the duty will ease pressure on subscribers and support industry expansion.
He added that the NCC was driving reforms based on transparency, accountability, and consumer protection, including:
- A public map of network performance (launching in September) to show download speeds, latency, and reliability.
- A quarterly network performance report based on user data.
- Stronger corporate governance standards to attract investment.
Telecom Policy Needs Updating
Maida noted that Nigeria’s telecom policy, introduced in 2000 to break monopoly and introduce competition, had achieved its purpose but now required revision.
“In the early 2000s, it was about voice and text. Today, it is about internet connectivity and emerging technologies such as AI, IoT, remote sensors, and augmented reality,” he said. “The policy did not fail, but we must evolve for new realities.”
Despite recent tariff adjustments, he stressed that competition has kept call rates low, with the highest at about ₦18–₦19 per minute, compared to ₦50 in the early 2000s.
Tackling Consumer Complaints
On consumer concerns, Maida said:
- A joint NCC-CBN task force has developed a new operational framework to standardize recharge processes.
- Tier-1 audit firms reviewed operators’ billing systems amid complaints of data depletion and found no systemic manipulation.
Instead, issues such as background app usage, device settings, and complex tariff structures were identified as causes of consumer dissatisfaction.
“We want the industry to grow, so consumers are happier, operators perform better, and the government benefits from a broader tax base,” Maida said.
Practical Data Management Tips
NCC’s Director of Consumer Affairs, Freda Bruce-Bennett, also gave subscribers tips to manage data more effectively, including:
- Disabling autoplay on social media
- Limiting background data
- Deleting unused apps
- Activating data-saving mode
- Using Wi-Fi when possible
She revealed that Nigeria currently has 172 million active telecom subscribers, with 141 million internet users (81.9%) and 105 million broadband users.
Media’s Role in Telecom Reforms
NCC’s Director of Public Affairs, Nnenna Ukoha, highlighted the importance of the media in sharing regulatory efforts.
“You are the ones that transmit and convey our transformative policies to the people of Nigeria,” she said.
“Therefore, I invite you to be open and talk to us freely. We are here to collaborate with you.”
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