Nigeria’s Federal Government Eliminates 5% Telecom Tax to Reduce Call and Data Expenses
The Nigerian Federal Government has taken a significant step to ease the financial burden on its citizens by completely abolishing the 5% excise duty previously imposed on telecommunication services. This pivotal decision brings welcome relief to millions of Nigerians who rely on their mobile phones daily for essential communication, business, and accessing online information. The move is strategically aimed at making call and data services more affordable, thereby enhancing connectivity and fostering greater digital inclusion across the nation.
The Journey to Tax Scrapping: A Timeline of Relief
The controversial 5% excise duty on telecom services was initially introduced in 2022, immediately sparking widespread concerns among consumers and various advocacy groups. Critics argued that the tax would inevitably lead to increased phone call rates and higher data costs, making essential communication less accessible for the average Nigerian. Due to these persistent public outcries and the undeniable pressure on household budgets, President Bola Ahmed Tinubu took prompt action by suspending the contentious tax in July 2023. This temporary suspension offered a glimmer of hope, and now, the Federal Government has confirmed its permanent scrapping. This means the excise duty will not be reimposed, ensuring that telecom users will not face its burden on their future phone bills. The decision underscores a commitment to prioritizing the welfare of Nigerians in the digital age, a sentiment often echoed by key figures in the sector, including Dr. Aminu Maida, the Executive Vice-Chairman of the Nigerian Communications Commission.
This permanent removal of the 5% telecom tax is poised to have a tangible positive impact on the daily lives of Nigerians. By reducing the cost of staying connected, the government is not only alleviating economic pressure but also promoting wider access to digital opportunities. This move reinforces the nation’s commitment to supporting its vast telecommunications sector and ensuring that essential services remain within reach for all citizens, contributing to a more connected and economically vibrant Nigeria.
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