Latest News
“NCC: Tinubu Cancels 5% Tax On Telecom Services To Ease Burden”
President Bola Tinubu has permanently abolished the 5% tax on telecommunications services, according to IReporter Online, a move confirmed by the head of Nigeria’s communications regulator.
Aminu Maida, executive vice-chairman of the Nigerian Communications Commission (NCC), announced the development to journalists in Abuja on Tuesday.
He explained that while the tax had previously been suspended, it has now been fully removed under new tax legislation.
“The excise duty, it was the 5 percent or so, that is no longer there,” Maida told reporters.
“Before it was suspended, but now the president has been magnanimous to remove it entirely, i was in a room when it was raised, and he said, no, we cannot put this on Nigerians, i was very pleased when the bills came out and we saw his words were followed through.”
According to IReporter Online, this 5% telecommunications tax has had a complex history over the last year and a half. Initially introduced, it was temporarily suspended in July 2023 following four executive orders signed by President Tinubu.
This suspension aimed to ease the financial burden on both businesses and ordinary Nigerians amid broader tax reforms.
However, the situation changed in October 2024 when the National Assembly proposed reinstating the tax on telecommunications, as well as imposing levies on gaming, betting, and lottery services.
The proposal faced significant pushback from the telecommunications sector.
The Association of Telecommunications Companies of Nigeria (ATCON) opposed the reintroduction of the tax, arguing it would be unjust to burden telecom firms already grappling with operational challenges.
According to IReporter Online, the industry’s resistance was a major factor influencing the final decision to scrap the tax permanently.
”IREPORTER REPORTS”
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