Tinubu Scraps 5% Telecom Levy to Ease Subscriber Burden, Boost Sector Growth

0
Bola Tinubu

 

President Bola Ahmed Tinubu has ordered the scrapping of a proposed five per cent levy on telecommunications services, a move aimed at easing cost pressures on subscribers and driving growth in Nigeria’s digital economy.

The development was confirmed by the Executive Vice-Chairman of the Nigerian Communications Commission (NCC), Dr. Aminu Maida, during an interactive session with journalists in Abuja on Tuesday.

“The excise duty, it was five per cent or so, that is no longer there,” Maida said. “Before, it was suspended, but now the President has been magnanimous to remove it entirely. I was very pleased when the bills came out and we saw his words were followed through.”

The levy, first introduced in 2022 under former President Muhammadu Buhari as part of a broader tax reform bill, was suspended in July 2023 following public backlash over its potential impact on consumers.

Dr. Maida explained that removing the duty would not only relieve subscribers but also stimulate expansion in the telecom industry, which is critical to Nigeria’s digital transformation. He added that the NCC was implementing reforms centred on transparency, consumer protection, and corporate governance to attract investment and strengthen competition.

Among the measures announced, the NCC will launch a public map of network performance in September, giving subscribers independent data on download speeds, latency, and service quality. The regulator will also begin publishing a quarterly network performance report to improve accountability for operators and infrastructure providers.

On long-standing consumer complaints about rapid data depletion, Maida clarified that independent audits by top accounting firms found no systemic fraud. Instead, factors such as device settings, background app usage, and complex tariff structures were identified as contributors.

To address this, the NCC and the Central Bank of Nigeria are finalising a standardised recharge framework to simplify processes for subscribers. Meanwhile, the Director of Consumer Affairs Bureau, Freda Bruce-Bennett, encouraged Nigerians to adopt data-saving practices such as disabling autoplay on social media, limiting background data, and maximising Wi-Fi usage.

Highlighting broader sector reforms, Maida noted progress in resolving USSD debt disputes, conducting NIN-SIM audits, transitioning to end-user billing, and launching a Major Incident Reporting Portal. He also underscored the need for fresh policy direction to tackle emerging technologies like artificial intelligence, the Internet of Things, and remote systems.

With over 172 million active telecom subscribers, including 141 million internet users and 105 million broadband connections, the sector remains central to Nigeria’s economic future.

NCC’s Director of Public Affairs, Nnenna Ukoha, commended the media for amplifying the regulator’s policies and urged continued collaboration to ensure transparency and accountability.

Leave a Reply