The Nigerian Communications Commission (NCC)

The Minister of Finance Budget and National Planning, Zainab Ahmed, has disclosed that the federal government is set to implement a 5% excise duty on telecommunication services in the country. Bringing the tax on telecommunications services to 12.5%.

The Minister, represented by the Assistant Chief Officer of the Finance Budget and National Planning, Mr. Frank Oshanipin, at an event organized by the Nigeria Communication Commission (NCC), said that the federal government had not implemented the 5% excise duty even though they included it in the Finance Act 2020. 

What’s more 
According to the Minister, the telecommunication operators in Nigeria are to make payments on a monthly basis and by the 21st of each month. 

What this means 
The Chairman, Association of Licensed Telecom Owners of Nigeria (ALTON), Gbenga Adebayo in response to the 5% duty said telecom operators in the country would pass the billing to the subscribers, bringing the total tax paid by them to 12.5%. According to him, this is because the operators already pay 39 multiple taxes at a time the cost of operation has increased. 

Therefore, Nigerian telecommunications subscribers will pay more on text, calls and data services provided by telecom operators. 

What you should know 

  • Telecom operators in Nigeria already pay 2% excise duty to the NCC, 7.5% Value Added Tax (VAT) and other 39 taxes.
  • The federal government projects a revenue of at least N150 billion from the 5% duty. 
  • The federal government also extended the excise duty to sweetened drinks, tobacco, alcohol, narcotics, gambling to discourage usage and consumption. 
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