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Tinubu Cancels 5% Telecom Tax, Relief for 171m Users

Millions of Nigerian mobile users have been handed a reprieve as the federal government cancels the 5% excise duty on telecom services.

The duty, first introduced under former President Muhammadu Buhari, was meant to apply to both voice calls and data.

It was suspended in 2022, confirmed again in 2023, but uncertainty lingered until this week when the Nigerian Communications Commission (NCC) confirmed the tax is gone for good.

Industry and Users Welcome Relief

The NCC boss, Aminu Maida, said the removal fits into a wider plan to make telecom services more affordable and reliable.

The regulator also announced fresh steps to enforce stricter service standards and centralise billing responsibilities with end-user platforms.

Nigeria has over 171 million active telecom users, many already coping with higher tariffs and poor service. Operators raised tariffs by up to 50% earlier this year, partly because of the naira devaluation.

Industry players said the tax would have worsened the burden. Gbenga Adebayo, chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON), said: “We welcome this move, but government must avoid sneaky levies that return the same burden under a new name.”

Subscribers’ Group Calls It Victory

Subscribers also cheered the decision. The National Association of Telecoms Subscribers (NATCOMs) had threatened legal action if the tax was implemented.

Its president, Deolu Ogunbanjo, said: “This is a step in the right direction. It means an end to our planned court battle, and relief for millions of Nigerians.”

The question now is whether lower costs will also come with better service. Can this decision signal a turning point for Nigeria’s telecom sector? Or will subscribers still struggle with dropped calls and poor internet speed?
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