Tinubu Administration Axes Controversial Telecoms Tax in Nigeria
President Bola Ahmed Tinubu has removed the 5% excise tax on telecommunications services in Nigeria, providing a significant reprieve for the nation’s vast mobile user base. This decision brings an end to the uncertainty surrounding the tax, which was initially introduced under the previous administration and had generated considerable concern within the industry and among consumers. This is welcome news for Nigeria’s 171 million active mobile subscribers.
Impact and Implications of Tax Removal
The scrapped tax, which would have affected both voice calls and data services, faced strong opposition due to its potential to increase costs for both telecom operators and end-users. The removal of this tax is particularly timely, considering that telecom tariffs in Nigeria have already seen a significant surge, increasing by 50% this year. The excise tax, though briefly suspended in mid-2023, remained a point of contention until President Tinubu’s directive during discussions on the Finance Act. The announcement came directly from the NCC chief, Aminu Maida. This move aligns with broader government efforts aimed at enhancing affordability and service quality within the Nigerian telecoms sector. Initiatives include establishing stricter service benchmarks and implementing centralized billing oversight.
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