FG Scraps 5% Telecom Tax: What It Means for Call and Data Costs in Nigeria

FG Scraps 5% Telecom Tax: What This Means for Nigerian Users

The Federal Government has officially removed the 5% excise duty on telecommunications services, a levy that applied to both voice calls and data. The directive, confirmed through the Finance Act and by the Nigerian Communications Commission (NCC), signals a major policy shift in Nigeria’s digital economy.

On paper, this should be good news for consumers. But the real impact is more complex.

The Price Question

Technically, scrapping the excise duty lowers the cost base for operators like MTN, Airtel, Glo, and 9mobile. The big question is whether users will actually see a reduction in their bills. Telecom companies face rising operational expenses due to high energy costs, forex volatility, and infrastructure challenges. Some may choose to absorb the tax removal as internal relief rather than lowering prices immediately.

If the NCC enforces the directive strictly, Nigerians could expect cheaper call rates and data bundles in the coming weeks. For now, users should monitor their airtime and data receipts to see if the savings reach them.

Who Benefits Most?

Heavy data users stand to gain the most if the tax removal translates into lower costs. Students streaming lectures, remote workers, and small businesses that run entirely online could save significantly over time. Since data consumption in Nigeria far outpaces voice usage, even a modest price cut will compound into meaningful relief.

Digital Inclusion Push

Beyond pricing, the move reveals the government’s intent to boost digital inclusion. Lower telecom costs can expand internet access, attract more people into the digital economy, and strengthen key sectors like fintech, e-commerce, and online education. It also aligns with broader policy goals of increasing broadband penetration and driving Nigeria’s digital transformation.

Ripple Effects on the Economy

Cheaper telecom services could encourage higher adoption of streaming, e-commerce, and remote collaboration tools. For entrepreneurs, especially SMEs, reduced costs may improve margins and make online services more accessible to their customers. The broader economy benefits when more citizens are connected affordably and consistently.

The removal of the 5% telecom excise duty is a win on paper, but its true value depends on implementation. If operators pass on the savings, Nigerians could soon see more affordable voice and data rates. If not, the relief stays trapped in the balance sheets of telecom companies.

For now, the best advice for users is simple: pay attention to your receipts. If data bundles and call charges remain unchanged, the pressure will be on regulators to ensure that the policy delivers real benefits to the public.