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How desirable is 5% Excise Duty on Telecom Services?

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By Ibrahim Dan Halilu

The Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed has thrown Nigeria into another controversy amidst plans to launch the 5G network, which is expected to transform every sector and sphere of life of the citizenry.

Telecom

Coming at a time when Nigeria warming up to launch the largest high speed mobile network technology (5G) in Africa, the 5% excise duty on telecom services being implemented by the Federal Ministry of Finance and the Nigeria Customs Service, is not only a negation of the laudable gains of the Buhari administration in the telecom sector but another incontrovertible proof of the administration’s poor policy coordination.

The expectation of most Nigerians is that the Finance Minister and the Controller General of the Nigeria Customs Service who are the prime advocates of the 5% excise duty will engage with the Ministry of Communications and Digital Economy under whose purview the telecom sector presides, and the Nigerian Communications Commission (NCC) which is the telecom sector regulator, to create a synergy before rolling out the new tax regime.

It is no brainer to understand the imperative of engaging with these two government institutions whose role is central to all that the administration has achieved in that sector.

The NCC has over the years implemented various initiatives and programmes that have stabilized the telecom sector and created a very healthy environment for the industry to thrive and offer quality and affordable service to Nigerians.

The commission’s declaration of 2016 as the Year of the Telecom Consumers has placed premium on the consumer as king who should be treated with respect and offered value for money.

Conversely for the mobile network operators who enjoyed massive support of the Commission disputes resolution, protection of critical telecom infrastructures, and restoration of operational facilities that enhance better performance of the industry.

The Commission has played a very strategic role in resisting arbitrary hike in tariffs and other charges for telecom services which can impose additional burden on the consumers. Instead, the NCC envisions a new tariff regime that has not only reduced the cost of data by more than 100% but further increased access to telecom services in Nigeria.
Its robust National Broadband Policy 2020-2025 is aimed at achieving a new landmark in telecom operations in Nigeria as it rolls out the 5G technology that will change the way of doing almost everything.

Similarly, the Ministry of Communications and Digital Economy through its indefatigable minister, Prof. Isa Ali Pantami has launched Nigeria on the world map of countries that are transiting from analogue to digital economy with the unveiling of a robust policy on 5G Network and Digital Economy.

These are commendable efforts that should be complimented by the Federal Ministry of Finance and Nigeria Customs Service (NCS) through advocacy for a downward review or complete removal of some of the tariffs imposed on the MNOs and other service providers.

The presidential inauguration of a 27-person committee charged with the teak of exploring ways of improving Nigeria’s ranking on the Ease of Doing Business, should have been followed by an aggressive drive of the Federal Ministry of Finance to streamline some of the regulatory measures that hinder the effective performance of the industry such as multiple taxation, and promote policies that will remove barriers to consumer adoption of the new technology.

It is on this note that one wishes to appeal to the Minister of Finance to exercise the power conferred on her by the Finance Act 2020 with caution and empathy to the Nigerian consumers who are already overburdened by new series of taxes introduced by the Buhari Administration.

The Minster needs to find equilibrium between government’s desires to raise more funds and citizen’s expectations for better welfare as the destabilizing effects of the new tax regime outweigh its monetary benefits both to the economy and the citizens.

Firstly, the policy will reverse the gains recorded by the NCC in reducing the cost of telecom services to the consumer and efficient service by the Mobile Network operators (MNOs) who have to contend with multiple taxations and increased operation costs.

Secondly, the new policy may further have adverse effect on the flow of both foreign and local investment in the broadband infrastructure that is needed to scale up the deployment of 5G network to other cities across the country. The MNOs are already groaning under an indiscriminate multiple taxation policy that make is harming their business.

The greatest damage the new tariff will do to Nigeria’s telecom sector is derailing the rollout and total adoption of the 5G network that is being test run by the major telecom service network, the MTN whose competitor, Mafab has already announced an extension of the 5G launch to end of the year due to unforeseen challenges.

The Federal Government’s policy on 5G Spectrum for Digital Economy driven by the Ministry of Communication and Digital Economy may suffer a setback under the new harsh tax regime that targets the telecom sector as a major revenue earner for government.

The imposition of the 5% excise duty will be an additional burden on small businesses and individuals who wish to take advantage of the benefits and opportunities offered by the 5G network to expand and improve their businesses as they may face a new tariff regime.

Another possible consequence of the new tax regime is retarding the progress made in launching Nigeria into the open governance platform that promotes transparency and accountability, while enhancing citizens’ participation in governance as any increase in tariff will lead to low patronage of the telecom services.

It is my candid view therefore that the introduction of 5% excise duty on telecom services is both untimely and undesirable for Nigeria whose majority citizens are living below poverty margin, and have no visible source of income.

The Federal Ministry of Finance and the Nigeria Customs Service should dissipate more energy on initiating people-centred policies that will support the NCC in performing its regulatory functions instead of frustrating the laudable efforts of the commission to promote affordable and efficient telecom services in Nigeria.

The duo should regard themselves as a part of the same government that enunciated the policy of promoting digital economy through universal access to telecom services for Nigerians instead of a separate entity that competes for space or attention.

In her search for new avenues to improve government revenue, the Finance Minister should look beyond imposing excise duty on telecom services, and engage with the public and other stake holders to explore other options that are richly available.

The government can tilt the scale towards diversifying its revenue generation to imports for luxury items, luxury life-styles, and reducing the cost of governance at different levels. There are many wasteful spending that can be scaled down to save money for government to meet its financial obligations which is the main thrust of the Minster’s argument.

These include the purchase of exotic vehicles for public office holders, foreign travels, high duty allowances, and foreign trainings for public officials. Others are blocking the conduit pipes and confronting corruption head on.

These and many others will spare a huge sum that can be channeled to more productive projects that will impact on the lives of the people.

The rush to impose new tax regime on consumers of telecom services will be self-defeating, if at the end of the day the only benefit it accrues to the government is more money to spend instead of better welfare for citizens.

The telecom services are no longer a luxury but necessary tools that Nigerians need to connect with the rest of the word, share their ideas, knowledge, and information for a much better society.

The government should not shut out Nigerians or make it impossible for them to reach out to the rest of the world to market their skills, talents, and products in return for the much needed foreign exchange which is the essence of the digital economy which is the fulcrum of the administration’s |economic policy.

Nigerians deserve efficient and affordable telecom services to conduct their business activities on a global scale, which the controversial 5% excise duty seems to negate. It is a right, not privilege!

Ibrahim Dan Halilu is an Abuja based media consultant and communication expert. He can be reached via email at idhalilu@gmail.com or mobile 08101064449 9SMS only).

 

 

 


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Ugo Onwuaso is an ICT enthusiast. He believes technology should be used for general good. He holds a Master of Public Administration (MPA) degree from the Lagos state University. Dear Reader, Your support matters. But we believe that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. That is why, we have devoted our energy to independent reportage of technology and finance and how they affect lives. Our incisive and analytical view of how technology news affects the daily life help individuals and organizations make up their minds. Quality journalism costs money. Today, we're asking that you support us to do more. Kindly support our effort to deliver technology and finance journalism to everyone in the world. Donate as little as N1,000. Bank transfers can be made to: UBA Plc 1017156876 Communication Week Media Ltd

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Netflix Hikes Subscription Fees Again in Nigeria over “Market Conditions”

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Netflix has increased its subscription fees in Nigeria for the third time since 2024, with the Premium Plan rising by 21.43%, from ₦7,000 to ₦8,500 per month.

Netflix Hikes Subscription Fees Again in Nigeria over “Market Conditions”

This marks the streaming platform’s first price adjustment in 2025.

Other subscription tiers have also been affected.

The Standard Plan now costs ₦6,500, up from ₦5,500—a hike of 18.18%.

The Basic Plan has increased from ₦3,500 to ₦4,000, while the Mobile Plan moved from ₦2,200 to ₦2,500, reflecting increases of 14.29% and 13.64% respectively.

The latest adjustment aligns with Netflix’s broader global pricing strategy, which the company has linked to its ongoing investment in content and platform development. In a previous communication to investors, Netflix stated, “As we invest in and improve Netflix, we’ll occasionally ask our members to pay a little extra to reflect those improvements. Which in turn helps drive the positive flywheel of additional investment to further improve and grow our service.”

While the company did not explicitly cite inflation in its most recent update, its website indicates that local economic factors influence its pricing structure.

“Price changes are made to respond to local market changes, such as changes to local taxes or inflation,” the statement read.

The move mirrors similar pricing shifts among other major digital and entertainment services in Nigeria.

Companies including Google, DSTV, GOtv, and Microsoft have also raised subscription rates, attributing their decisions to continued inflationary pressures and a weakening naira.


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NBC, Nigcomsat Launch Satellite Plan to Transform Broadcasting

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National Broadcasting Commission (NBC) and Nigerian Communications Satellite Limited (NIGCOMSAT) have jointly introduced “The Big Picture’, a flagship initiative under Nigeria’s renewed Digital Switchover (DSO) project.

NBC, Nigcomsat Launch Satellite Plan to Transform Broadcasting

Under the project,  Nigerian households will for the first time, gain access to high-quality digital broadcasts via affordable satellite dishes, hybrid devices, and internet-enabled set-top boxes.

Backed by President Bola Ahmed Tinubu and in line with his Renewed Hope Agenda, this strategic shift marks a significant step toward transforming Nigeria’s broadcasting landscape by leveraging the country’s sovereign satellite infrastructure.

At the heart of the initiative is NigComSat-1R, Nigeria’s only communications satellite in orbit, which will play a critical role in delivering Direct-to-Home (DTH) broadcasts across the entire Nigerian territory.

This satellite-first approach eliminates the traditional dependence on terrestrial transmission towers, accelerating the nationwide rollout of digital broadcasting by over 65%.

It also offers a scalable, cost-effective, and future-ready model for expanding digital access and promoting national storytelling.

Key figures, including: Charles Ebuebu, director-general, NBC; and Jane Nkechi Egerton-Idehen, managing director, Nigcomsat, have welcomed this forward-thinking strategy, emphasising its importance in maximising the use of national satellite assets and ensuring inclusive access to digital content.

An estimated 10 million homes equipped with DVB-S2-compatible televisions or decoders will have immediate access to free-to-air channels, while others will benefit from next-generation hybrid devices that combine satellite feeds with online streaming capabilities.

These new branded devices are designed with the country’s youth-dominated demographic in mind over 60% of the population is under the age of 25.

They will feature pre-installed apps, voice search functionality, parental controls, and seamless integration with NigComSat’s Electronic Programme Guide (EPG), offering an intuitive and engaging user experience.

In a data-driven upgrade to Nigeria’s  broadcasting ecosystem, NBC is also partnering with global analytics firm GARB to introduce real-time audience measurement technology.

This will enable broadcasters, advertisers and content creators to analyse viewership trends across regions and devices, helping to tailor content more effectively and drive higher audience engagement. The introduction of this system is expected to boost advertising revenue by as much as 300% by 2026.

The success of “The Big Picture” will rely on robust collaboration between public and private stakeholders.

The Broadcasting Organisation of Nigeria (BON) and other content partners are expected to supply 60% of programming for the new 120-channel platform, using both original and repurposed content.

Meanwhile, local manufacturers will contribute by producing around 5 million compliant devices annually, a move projected to create over 20,000 jobs in assembly plants nationwide.


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ACAMB Champions Bankers Wellness with Aerobics Fitness Session

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As part of its commitment to promoting a healthier and more resilient banking workforce, the Association of Corporate Affairs Managers of Banks (ACAMB) is organizing a special Aerobics Fitness Session on Saturday, May 31, 2025 at the Lagoon Front of the Eko Atlantic City.

The session is open to all bankers and marketing communication professionals within the industry and will feature a lineup of fun and energizing activities aimed at boosting physical and mental wellbeing.

With stress levels and burnout on the rise in high-pressure sectors like banking, ACAMB is taking, as it has done over the years, proactive steps to encourage lifestyle habits that support overall wellness and productivity.

Participants will begin the morning with a body warm-up and short walk to get their energy flowing, followed by an exciting dance aerobics session designed to elevate heart rates and lift spirits.

The day will continue with interactive fitness games that promote movement and team bonding, and will wrap up with a friendly but motivating fitness challenge to inspire healthy competition and personal bests.

“Bankers are vital to the financial ecosystem, and their wellness must be a priority,” said Rasheed Bolarinwa, President of ACAMB.

“This aerobics session is a powerful way to foster a culture of health, team bonding, and preventive care. It reflects our belief as ExCO that a strong mind and body, are essential for long-term professional excellence.”

The session is expected to kick off early in the morning to take advantage of the fresh morning air, allowing participants to start their weekend with energy, movement, and connection. It also presents an opportunity to unwind and build camaraderie amongst colleagues outside the traditional office setting.

This initiative is one of several wellness-focused programms ACAMB is rolling out to reinforce the importance of employee wellbeing in corporate and marketing communication and the broader banking ecosystem.

The Association of Corporate Affairs Managers of Banks (ACAMB) is the recognized professional association for marketing communications and public affairs executives in Nigeria’s banking industry.

ACAMB drives ethical communication standards, promotes internal and external stakeholder engagement, and supports member banks in advancing reputation, trust, employee growth and wellbeing.


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