Telecommunications subscribers in the country could soon be paying 5 percent more for data and voice services if President Bola Tinubu signs Nigeria Tax Bill 2024 into law.
Passed in the Senate on May 8, 2025, the bill reintroduces a controversial 5 percent excise tax on telecom services, a move telecom operators, subscribers and consumer rights groups have strongly opposed.
The bill revived the excise tax first introduced in the Finance Act of 2020 during the administration of former President Muhammadu Buhari.
President Bola Ahmed Tinubu had suspended the tax in July 2023, citing concerns that it could exacerbate inflation and hinder access to digital services, especially for low-income Nigerians.
The 2020 Finance Act had expanded the list of goods and services subject to excise duty, including telecom services.
However, the measure drew immediate and widespread criticism from telecom operators and consumer advocacy groups, who argued that the additional cost would burden citizens and increase the price of essential services in an already fragile economy.
Excise duty is a tax on certain goods produced or sold within a country and other activities as may be specified in the enabling law, including services.
As contained in the 2022 Finance Act, the tax is chargeable on all services regulated by the Nigerian Communications Commission (“NCC”) listed as postpaid and prepaid services at the rate of 5% for 2022, 2023 & 2024.
According to a report by PWC at the time, prior to the suspension of excise duty on certain goods in 2009, excise duty was applicable on recharge cards/vouchers.
The telecommunication companies are to pay the tax based on the excisable value of postpaid and prepaid services.
In July 2023, President Tinubu signed an Executive Order suspending the “5% Excise Tax on telecommunication services as well as the Excise Duties escalation on locally manufactured products.”
