The Association of Telecommunications, Information Technology, Cable Satellite Network Operators and Allied Services Employers of Nigeria (ATICEN) has praised President Bola Tinubu for cancelling the controversial 5% excise duty on telecommunications services, describing the decision as “highly commendable.”
The Union’s President, Comrade Adede John Williams, highlighted the burdens the duty would have put on the sector if not abolished.
In a landmark decision that has been widely celebrated across Nigeria’s telecommunications sector, President Bola Tinubu has officially cancelled the previously proposed introduction of a 5% excise duty on telecommunications services.
The announcement, confirmed by the Nigerian Communications Commission (NCC), represents a significant victory for industry stakeholders and consumers alike who had vigorously opposed the tax since its initial proposal in 2022.
The decision, announced by the President, effectively ends a prolonged period of uncertainty and fierce opposition from within the sector and among consumers.
The initial announcement of the levy, which had been championed by the previous administration as part of its 2023 Finance Act, was met with immediate and sustained criticism.
Major industry associations, including the Association of Telecommunications Companies of Nigeria (ATCON), Association of Telecommunications, Information Technology, Cable Satellite Network Operators and Allied Services Employers of Nigeria (ATICEN), and the subscribers under the the umbrella of the Association of Telephone, Cable TV, and Internet Subscribers (ATCIS) had led the charge against its implementation.
They argued vehemently that the additional tax would place an unbearable burden on an already heavily taxed industry, stifle growth, and ultimately force operators to transfer the cost to subscribers, thereby increasing the cost of communication and deepening the digital divide.
For over a year, these groups had engaged in a series of rejections and advocacy, presenting position papers to the government that highlighted the potential negative impacts on national digital transformation goals and the economic well-being of ordinary Nigerians.
The sector, often described as the backbone of the modern economy, was seen as an inappropriate target for such a levy, especially given its critical role in enabling other industries and financial inclusion.
The commendations from the bodies followed President Tinubu’s decisive action, which they have hailed as a wise and progressive step.
They have praised the administration for its listening ear and for demonstrating a commitment to fostering a conducive environment for business growth and investment in the digital economy.
Stakeholders believe that cancelling the excise duty will not only provide relief to millions of telecom consumers but also bolster the sector’s capacity to continue investing in network expansion and improving service quality, thereby strengthening Nigeria’s overall economic resilience.
In a chat with New Telegraph, Williams said the decision will further enhance the digital economy as it would give the operators relief to improve their services, while the subscribers will not have to pay more to enjoy telecoms services.
According to him, telecoms would have had to further increase their tariffs if the excise duty were enforced.
He also commended the NCC under the leadership of Dr. Aminu Maida for fighting for the welfare of the operators and the subscribers.
Also speaking, ATCIS National President, Hon. Sina Bilesanmi, said the President’s decision to remove the excise duty indicated his readiness to develop telecommunications in Nigeria.
Bilesanmi described the decision as the right thing to do for the masses as part of efforts geared towards alleviating poverty in the country.
