The Federal Government has officially removed the 5% excise tax on telecommunications services, including voice calls and data. This decision is expected to bring some relief to over 170 million mobile users across Nigeria who have recently seen an increase in tarrifs across board.
Why Was the Tax Removed?
The tax was first introduced in 2022 under the Buhari administration to boost non-oil revenue. It applied to both voice and data services, with telecom companies required to remit payments monthly. But from the start, it faced strong opposition.
Telecom operators warned that the tax would increase costs for users. Many were already dealing with over 39 different taxes, high diesel expenses to power base stations, and a 7.5% VAT. Adding another 5% pushed the total tax burden to around 12.5%, which was passed directly to consumers.
Also Read: Nigeria’s 5% Fuel Tax: It’s Not Just About the Money
What Changed in 2025?
Earlier this year, the Nigerian Communications Commission (NCC) approved a 50% increase in telecom tariffs. Data plans, SMS rates, and call charges all went up. For example:
- MTN’s 1.8GB monthly plan rose from ₦1,000 to ₦1,500.
- A 20GB plan jumped from ₦5,500 to ₦7,500.
- SMS costs increased from ₦4 to ₦6.
This made telecom services more expensive for everyday Nigerians, especially low-income users. Many had to cut back on data usage or switch to cheaper plans.
Want to Know how much Tax leaves your Salary? Try this Personal Income Tax Calculator in Nigeria
What Does This Mean Now?
With the 5% tax removed, operators won’t have to pass that extra cost to users. While prices may not drop immediately, the move helps reduce pressure on telecom bills and may slow future price hikes.
The government says this decision is part of a broader effort to ease the cost of living and support digital access for all Nigerians.
So, we will see if data and Voice call prices stabilize or improve over time and if the telecom companies will introduce better bundles.