• Nigeria may reintroduce a 5% tax on data and voice services under 2024 Finance Bill
• Operators warn it could raise costs and slow digital access across the country
• Over 40% of Nigerians remain offline, highlighting digital inclusion concerns

Nigeria may bring back a 5% excise tax on telecom services, according to the 2024 Finance Bill passed by the Senate last week. The tax would apply to data transmission and voice calls.

First introduced in 2020 under the Buhari administration to widen the tax base, the measure was suspended in 2023 by President Bola Tinubu due to rising inflation. With the budget under pressure, the government is now considering reinstating it.

Telecom operators warn that the tax would raise service costs and make it harder to close Nigeria’s digital divide, which still leaves more than 40% of the population without internet access.

Gbenga Adebayo, Chairman of the Association of Licensed Telecoms Operators of Nigeria (ALTON), said the proposal lacks detail and would increase the financial burden on users.

“We’ve had no clarity on how the 5% tax would be implemented, but the burden will fall on the consumer.  Telecoms should be treated as a social good, not taxed like luxury items. No one taxes telecoms like this in countries where infrastructure is taken seriously,” he said.

ALTON also noted that operators are already subject to 54 different taxes nationwide. The Nigerian Communications Commission (NCC) has not yet received the official version of the bill for review.

Industry experts say the move could affect investment in digital infrastructure, just as the sector shows signs of recovery. In Q1 2025, MTN Nigeria posted a profit of 133.7 billion nairas (around $83.3 million), and Airtel Africa reported a pre-tax profit of $661 million for the financial year ending March 2025.

As internet access becomes key for education, healthcare, and jobs, many believe higher telecom costs could widen digital gaps. Industry leaders are calling for a long-term plan based on investment and connectivity, instead of short-term tax policies.