172 Million Subscribers As Tinubu Cancels Planned 5% Telecoms Tax

Some relief may have come the way of telecom subscribers in the country following President Bola Tinubu’s decision to scrap the planned five per cent excise duty on telecommunications services.

The move comes at a time when about 172 million active subscribers have been grappling with poor service quality, including data depletion, dropped calls and failed top-ups, alongside a recently approved 50 per cent tariff hike that has boosted revenues for mobile network operators.

While opinions remain divided on whether the removal will translate into cheaper calls and data, the decision was confirmed yesterday by the Executive Vice-Chairman of the Nigerian Communications Commission (NCC), Dr Aminu Maida. Newspaper subscription bundles

Speaking to journalists in Abuja, Maida explained that the levy, which had previously been suspended, has now been completely abolished under the new tax laws.

“The excise duty, it was the 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.”

The controversial tax was first introduced under the previous administration as part of the 2020 Finance Act to boost government revenue. However, it faced strong opposition from industry stakeholders and the public, who argued that it would raise the cost of services and impose an additional burden on consumers.

In[b] July 2023, President Tinubu signed an executive order suspending the tax, citing concerns about its impact on businesses and households. This latest development marks a definitive end to the policy.

The decision is seen as a fulfilment of President Tinubu’s pledge to prioritise the welfare of Nigerians and foster a more business-friendly environment. The cancellation of the tax is expected to ease cost pressures on subscribers and support the growth of the telecommunications sector, a key driver of the nation’s digital economy. Newspaper subscription bundles
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Reacting to the development, the President of the National Association of Telecom Subscribers of Nigeria (NATCOMs), Chief Deolu Ogunbanjo, described the news as soothing. He stressed that if it had been allowed to stand, telecom operators would still have increased tariffs on calls and data despite the 50 per cent hike granted in January 2025.

Confirming to The Guardian that NATCOMs still has a case at the Federal High Court, Ikoyi, Ogunbanjo said, “The NATCOMs executives will meet to finalise how to withdraw the case from the court. This is a good one for the over 170 million active subscribers in the country.” Newspaper subscription bundles

The NATCOMs boss explained that with the outright removal from the Finance Act, there would now be price stabilisation, meaning no further tariff adjustments by service providers.

“You know, if the Federal Government had allowed the five per cent, it means there will be additional tariff increase on data, calls by the operators anytime soon, despite the fact that they were gifted 50 per cent hike in January this year.

“The subscribers association is still begging the Nigerian Communications Commission (NCC) to still help review downward the 50 per cent to 35 per cent, which was what we initially agreed to earlier in the year. But, as it is, it is a succour to subscribers. We appreciate Mr President for this gesture,” he stated. Newspaper subscription bundles

On his part, the Chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON), Gbenga Adebayo, said the industry still awaits the full report to be sure that, “It won’t be that a five per cent was removed from one part but another seven per cent has been added somewhere else.”

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However, he said the industry will welcome the outright removal and expressed hope that the much-expected succour comes to the teeming subscribers.

In[b] an earlier message at the weekend during the launch of Nigeria’s first Digital Museum in Lagos, Adebayo had said that service providers were banking on President Bola Tinubu’s upcoming tax reforms to ease the sector’s long-standing burden of multiple levies, which have constrained investment and slowed expansion. Newspaper subscription bundles

President Tinubu had signed four major tax reform bills into law on June 26, 2025, with implementation set for January 1, 2026. The legislation, collectively known as the “Reform Acts”, consolidates multiple tax laws, abolishes many minor levies, and raises thresholds to relieve small businesses.
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“We eagerly await the commencement of the implementation in January 2026. We are confident that the over 56 taxes and levies currently borne by our members across various jurisdictions will soon become a thing of the past.”

The ALTON Chairman described the reforms as a pivotal step toward streamlining Nigeria’s tax system and eliminating the burden of multiple taxation. He highlighted the positive impact on small and medium-sized businesses, noting that the changes will promote entrepreneurship, attract investment, and foster a more business-friendly environment. Newspaper subscription bundles

Further, at the Abuja interactive meeting, Maida emphasised corporate governance, saying it would be deployed as a tool to strengthen the industry. “Transparent, well-governed companies attract investment and perform better,” he said, adding that the goal was to lay the foundation for a Nigerian telecom company that is wholly owned, well-run and globally competitive.

The EVC pointed to reforms such as the conclusion of the NIN-SIM audit, the settlement of USSD debt disputes, the transition to end-user billing and the launch of a Major Incident Reporting Portal as evidence of progress. Newspaper subscription bundles

He stressed that the telecom policy of 2000, which focused on breaking the monopoly and introducing competition, had achieved its purpose but now required revision.

In the early 2000s, it was about voice and text. Today, it is about internet connectivity and the emerging technologies that depend on it – artificial intelligence, internet of things, remote sensors, and augmented reality. The policy did not fail, but we must evolve for new realities,” he said.

He argued that competition remained a key factor in keeping call tariffs relatively low, noting that despite recent adjustments, the most expensive call rate in the market today is about N18 or N19 per minute, compared to N50 per minute in the early 2000s.

Subscribers decry poor telecom services, accuse NCC of inaction

Telephone subscribers across the country have raised concerns over the declining quality of service (QoS) from their providers, accusing the Nigerian Communications Commission of failing to act.Newspaper subscription bundles

The complaints were made under the platforms of the Association of Telephone, Cable TV, and Internet Subscribers of Nigeria (ATCIS-Nigeria) and the National Association of Telecoms Subscribers of Nigeria, both of which urged the regulator to compel Mobile Network Operators (MNOs), also known as telcos, to improve service delivery. Newspaper subscription bundles

The MNOs, however, dismissed the allegations, insisting that no formal complaints on poor service delivery had been escalated to them, even as they continue to push for tariff increases.

NATCOM National President, Deolu Ogunbanjo, said the service rendered by the operators had become “so bad” that subscribers now lament openly. He noted that while subscribers are dissatisfied, the telcos continue to complain about constraints limiting their ability to expand capacity.

ATCIS-Nigeria President, Sina Bilesanmi, on his part, accused the NCC of “pretending that all is well” while subscribers are left to endure worsening services.

He said members of his association had repeatedly complained about dropped calls, inability to originate calls, and difficulties accessing their airtime balance after recharging.

Bilesanmi argued that with service quality declining, there was no justification for telcos to demand a tariff hike. His words: “I have been inundated with complaints about low service quality from my members.

“It is worrisome and the NCC is pretending that all is well. This low service quality is coming at a time when the MNOs are asking for a hike in tariff and our members were beginning to show understanding because, quite frankly, the tariff has remained the same for over a decade.

“The operators should tell us if they have any challenges.”
NCC partners CBN, banks to tackle failed telecom transactions. The Nigerian Communications Commission has unveiled fresh collaborative measures with the Central Bank of Nigeria (CBN) and financial institutions to tackle the recurring problem of failed telecom transactions and improve service quality across networks. Newspaper subscription bundles

Speaking at an interactive session with the media in Abuja yesterday, the Executive Vice-Chairman of the NCC, Dr Aminu Maida, said the Commission had revised its Quality of Service (QoS) guidelines and extended accountability beyond mobile network operators to include co-location service providers, commonly known as TowerCos.

On failed recharge and top-up complaints, Maida disclosed that the NCC had constituted a joint task force with the CBN and banks to standardise operations around electronic payments for airtime and data purchases.

When you recharge, you get debited and don’t necessarily get the credit. The director of consumer affairs with our counterparts in the CBN set up a task force, and there’s now a framework that is undergoing review to standardise the operations around top-ups and recharge,” Maida explained. He said investigations revealed that the absence of a standardised framework was at the root of the problem.

“It was literally up to every player in the ecosystem. That was why we had to bring all parties together,” he added. Beyond transaction failures, the EVC noted that the Commission had strengthened regulatory oversight on service delivery.

“We have revised our Quality of Service guidelines, so no longer do we just hold the mobile network operators accountable. We have brought TowerCos into scope to hold them accountable for quality of service,” he said.

According to him, operators had already submitted service improvement plans which are being reviewed through bi-weekly meetings with the regulator. He added that fresh investments were being made in critical infrastructure, while new equipment to boost network quality was being delivered and installed nationwide.

“We have engaged the operators directly on their rollout plans, and they are expected to deliver measurable improvements. Nigerians will soon begin to see the benefits of the ongoing deployments,” Maida assured.Newspaper subscription bundles

On rising complaints about data depletion, Maida explained that independent system audits carried out by Tier-1 firms such as PwC and Klynveld Peat Marwick Goerdeler (KPMG) found no evidence of operators deliberately draining customers’ data. Rather, he said, confusing tariff structures were partly to blame for consumer dissatisfaction.

“What we did was issue a guideline for simplification and gave them a template whereby everybody must disclose their tariffs in a unified format,” he stated.

Maida emphasised that information disclosure and transparency would remain key regulatory strategies for driving competitiveness, improving service delivery, and protecting consumers. He also noted that the NCC was monitoring emerging trends in digital consumption and promised that future regulatory interventions would support innovation while safeguarding users.

“Our role is to ensure that Nigerians not only have access to telecom services but can also rely on them with confidence,” he said. In her remarks, the Director of the Consumer Affairs Bureau at the NCC, Freda Bruce-Bennett, urged Nigerians to adopt smarter habits in managing their data usage. Newspaper subscription bundles

She[b] advised consumers to regularly update mobile applications, limit automatic downloads, and monitor background activities on their devices to reduce unnecessary data consumption. Bruce-Bennett also encouraged the use of data management tools provided by service providers.

“Simple steps like monitoring app permissions, turning off auto-play on videos, and disabling background data for non-essential apps can make a big difference,” Bruce-Bennett noted.
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The NCC reiterated its commitment to working with all stakeholders, including banks and mobile operators, to deliver reliable, affordable, and transparent telecom services to Nigerians. Newspaper subscription bundles

Former Chief Corporate Communications Officer of the Nigerian National Petroleum Company Limited (NNPC Ltd), Femi Soneye, has urged the Federal Government to grant tax incentives and import duty waivers on essential media tools, including newsprint, broadcast equipment, and digital infrastructure, to safeguard the sustainability of the country’s media industry. Newspaper subscription bundles

He also urged the government to establish an independent media development fund to support investigative journalism, community radio, and newsroom innovation.

This, he stated, are models practised in South Africa, the United States, and Canada. Soneye made the appeal in Abuja yesterday after receiving the NUJ FCT Excellence in Corporate Communications Award, conferred on him by the Nigerian Union of Journalists (NUJ), FCT Council.Newspaper subscription bundles

According to him, while the Nigerian media remains one of the most vibrant in Africa, it continues to grapple with systemic challenges that weaken its effectiveness. He said: “The Nigerian media remains one of the most vibrant in Africa, but it also faces systemic challenges, financial, political, legal, and technological that weaken its effectiveness.

“The government can play a supportive role by granting tax incentives or relief on import duties for newsprint, broadcast equipment, and digital infrastructure.”

The NUJ Executive, led by its Chairman, Comrade Grace Ike, described Soneye as a consummate professional who has distinguished himself with tact and excellence in the communications field. Ike praised Soneye for consistently supporting the union and advancing the interests of journalists both in Abuja and across the country.

“You have always stood with journalists, not only as a media owner but also as a practitioner who understands our struggles. Your advocacy for welfare, training, and ethical reporting has set you apart as an icon in this profession,” Ike added.