Nigerian President Removes Controversial Telecom Tax
Nigerian President Bola Tinubu has officially abolished a contentious 5 percent excise duty on telecommunications services, bringing relief to millions of mobile users nationwide.
Public Opposition and Tax Reforms
The tax had faced strong public opposition since its proposal in 2022. Its removal is part of broader tax reforms aimed at simplifying Nigeria’s tax system. Telecommunications executive Aminu Maida confirmed the move, citing the president’s intervention against the tax, emphasizing “we cannot burden Nigerians.”
Impact on Sector and Consumers
The elimination of the levy is expected to alleviate financial strain on subscribers and promote growth in a sector crucial to Nigeria’s digital economy. With over 172 million active phone subscribers and 141 million internet users, telecom services play a vital role in daily life and business operations.
Transparency Measures and Industry Competitiveness
Regulators are introducing new transparency measures alongside the tax removal. Starting in September, the government will publish detailed network performance maps showcasing download speeds and service quality in different regions. This initiative aims to empower consumers with better information and ensure operator accountability.
The government views these reforms as essential for fostering a more competitive telecommunications industry capable of supporting emerging technologies like artificial intelligence and the internet of things. Despite recent price adjustments, call rates remain significantly lower than in the early 2000s, thanks to sustained market competition.
