The Federal Government of Nigeria has permanently removed the controversial 5% excise duty on telecommunications services, a move hailed as a major relief for millions of mobile phone and internet users.

The excise duty, introduced under the Muhammadu Buhari administration, was designed to cover voice calls and data usage but faced heavy criticism from industry stakeholders and consumer groups.

According to a statement shared on the X handle of the National Orientation Agency, NOA, Aminu Maida, Executive Vice Chairman of the Nigerian Communications Commission (NCC), confirmed that President Bola Tinubu ordered the tax revocation during deliberations on the newly passed Finance Act.

Dr. Maida explained that the President’s decision to permanently remove the tax was aimed at preventing additional financial strain on citizens.

The decision is projected to provide relief for over 171 million active telecom subscribers nationwide, many of whom have struggled with a 50% tariff hike implemented earlier this year.

The 5% excise duty which was first announced in 2022 faced widespread criticism from both telecom operators and consumer rights groups, with government citing revenue generation as reason for the tax.

Telecom operators, under the umbrella of the Association of Licensed Telecom Operators of Nigeria, ALTON, also warned against the policy.