Tinubu Lifts Tax Burden On Telecom Subscribers • How It Will Empower The People

By Olabode Opeseitan

The Federal Government’s decision to revoke the 5% excise duty on telecommunications services marks a significant relief to over 171 million active telecom subscribers in Nigeria. This move, ordered by President Bola Ahmed Tinubu, comes at a time when Nigeria’s inflation rate is already showing a steady downward trend—easing to 21.88% in July 2025 from over 33% in July 2024—signaling a modest easing of economic pressures.

Key Benefits of the Tax Removal:
Lower Communication Costs: Eliminating the 5% tax on voice and data services directly reduces monthly telecom expenses, making access to communication more affordable for millions of Nigerians.

Boost to the Digital Economy: Many Nigerians currently switch their mobile data on and off as a cost-saving measure, risking missed opportunities in an increasingly digital-driven environment. An “always-on” connectivity culture is vital for optimizing participation in the digital economy—ensuring timely alerts to emerging business, educational, and social opportunities.

Consumer Relief and Economic Inclusiveness: The removal of this tax demonstrates responsiveness to public concerns and the government’s commitment to easing cost of living challenges.

Savings Analysis for the Average Subscriber:
Assuming an average monthly telecom spend of N4,600—which better reflects recent tariff adjustments—the 5% excise duty would have added about N230 monthly. This translates to roughly N2,760 annually in added costs for voice and data services. With this tax now repealed, Nigerian telecom subscribers stand to save nearly N3,000 each year, easing their monthly budgetary pressures significantly.

Recognition:
This decisive action by President Bola Ahmed Tinubu and the Nigerian Communications Commission is a welcome step toward enhancing affordability and connectivity. By making telecom services more accessible, the government is fostering an environment where Nigerians can fully engage in and benefit from the growing digital economy.