So This thing's Happened (EP 338) reviews: FG scraps 5% tax on airtime and data.
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"FG Scraps 5% Tax on Airtime and Data – Is This a Win for Nigerians?"
Yes indeed , the Federal Government of Nigeria (FG) has announced that they officially scrapped the 5% excise duty on telecommunications services, first introduced under Buhari. which included airtime and data.
President Bola Tinubu's administration confirmed the removal in August 2025, with officials from the Nigerian Communications Commission (NCC) announcing that the levy had been eliminated as part of the new tax laws. Officials say the move is to ease the financial burden on Nigeria’s over 170 million active subscribers.
Key details about the scrapping of the tax:
A reversal of a previous levy: The 5% excise duty was initially introduced by the previous administration in the 2020 Finance Act to increase government revenue.
Reason for the removal: The government cited a desire to ease the financial burden on millions of Nigerian subscribers who were already facing high costs for telecom services.
Response to public and industry pressure: The tax had faced strong criticism from both telecommunication companies and consumer advocacy groups, who argued it would increase the cost of essential digital services and stifle sector growth.
Impact on consumers: The decision is expected to bring relief to consumers, though telecom operators still face other operating costs, and it may take time for the full effect to be reflected in prices.
Part of broader fiscal reforms: The cancellation is part of the administration's wider tax reforms aimed at creating a more business-friendly environment and boosting the digital economy.
While Nigerians welcomed the relief, many are now calling on telecom providers to improve service delivery, as complaints about high costs and fast-draining data still continue...
Now Here Comes the Gigi...!!! And The General Public Questions❓
"5% Tax on Airtime and Data Scrapped – Does This Really Benefit You?"
"The Federal Government Has Removed the 5% Telecom Tax – What Does This Mean for You?"
"No More 5% Tax on Data and Airtime – Will Nigerians Actually Feel the Relief?"
"FG Drops 5% Airtime & Data Tax – Smart Move or Just Politics?"
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