New Telecom Tax Sparks Outrage: Nigerians Face Another Hike on Calls and Data as Senate Approves 5% Excise Duty
✍️ By: IDNN Business & Communications Desk
Nigerians already battling economic pressure are bracing for another blow to their wallets, as the Senate revives the controversial 5% excise tax on telecom services — just months after a painful 40% hike in tariffs.
If signed into law under the Nigeria Tax Bill 2024, the cost of phone calls, SMS, and data subscriptions could spike once again, hitting homes and businesses hard.
“There’s no room to absorb more costs. This will fall squarely on the consumer,” warned Gbenga Adebayo, Chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON).
FLASHBACK:
The 5% excise tax isn’t new. It first emerged in 2020 under President Buhari, aimed at widening Nigeria’s tax net. After fierce public backlash, President Tinubu suspended it in July 2023, warning it would escalate inflation and widen the digital divide.
But now in 2025, amid dwindling oil revenue, the Senate has brought it back to life — part of a desperate push to raise non-oil revenue and bridge Nigeria’s fiscal deficit.
THE REAL IMPACT:
Telecom giants like MTN Nigeria and Airtel Africa are warning of serious consequences:
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MTN lost ₦392.7bn in 2024, bounced back in Q1 2025 with ₦133.7bn
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Airtel Africa made $661m pre-tax profit in 2025, helped by previous price hikes
These fragile gains are now under threat.
DATA DEMAND SOARING:
Despite rising costs, Nigerians used over 1 million terabytes of data in January 2025 — the highest ever. That’s a 93% jump from January 2023, showing growing digital dependence.
But digital access might soon become a luxury.
“Internet and calls are not luxury goods. They’re lifelines,” said one consumer rights group. “This tax punishes everyone — especially students and SMEs.”
INDUSTRY TENSION RISING:
Telecom operators are already burdened with over 54 different taxes across federal, state, and local levels. With electricity and diesel costs skyrocketing, they warn this added pressure may slow investments, disrupt service quality, and erode affordability.
The bill now awaits presidential assent.
📉 IDNN TAKEAWAY:
Nigeria’s digital future is under threat. While government seeks new revenue, these telecom charges could alienate the very population driving innovation, remote work, online education, and tech enterprise. If unchecked, the 5% excise tax could undermine Nigeria’s ambition to lead Africa’s digital economy.
