Telecom
Subscribers, Telcos Kick as FG Slams 5 Percent Tax on Calls and Data

Federal government has slammed additional five per cent excise duty, that the telecom subscriber pays, which is different from the cost of voice call..

This was disclosed yesterday at a stakeholders’ meeting in Abuja, organised by the Nigerian Communications Commission (NCC).
Mr. Zainab Ahmed, minister of Finance, Budget and National Planning, was represented by Musa Umar, assistant director, Tax Policy, Federal Ministry of Finance, Budget and National Planning, while Frank Oshanipin, assistant chief officer in the ministry, did the ministry’s presentation.
But the Association of Licensed Telecoms Operators of Nigeria (ALTON), Association of Telecommunications Companies of Nigeria (ATCON), and National Association of Telecoms Subscribers (NATCOMS), have described the move as strange, insensitive, and irresponsible.
However, minister of Finance, Budget, and Planning, at the event, urged stakeholders to support the implementation of the 5 percent exercise duty on telecommunications services.
She highlighted that countries in Africa like Malawi, Uganda, Tanzania, and others have all keyed into this revenue generation pattern.
She emphasised that this is needed to change Nigeria’s economic situation for good.
“The issue of revenue is not something that needs to be shied away from, our revenue can no longer take care of our needs as a country.
“Also Nigeria is no longer making enough money in Oil revenue hence the attention is shifting to Non-revenue”.
She explained that the government is committed towards implementing the regulation in a seamless manner that will not affect Nigerians.
Earlier, in his remark, Prof Umar Danbatta, executive vice chairman/CEO NCC, said the forum is necessitated for stakeholders to get better clarifications on the 5% exercise duty on telecom services implementation.
“As the telecoms industry regulator, the Nigerian Communications Commission has engaged with the Federal Ministry of Finance, the Nigerian Customs Service, and consultants from the World Bank to get needed clarifications.
“These engagements enabled us to better understand the objectives and proposed implementation mechanisms of the Excise Duty.
“Nonetheless, we consider it imperative that these implementing agencies should also meet directly with telecoms industry stakeholders to address areas of concern”, he stated.
On his part, Hameed Ali, comptroller general of the Nigerian Customs Service, urged stakeholders to be patriotic toward implementing the policy.
Hameed represented by Mrs A.S Oshishi, assistant comptroller general NCS, revealed that telecommunications operators are expected to be dully registered with the service for seamless actualization of the process.
“Either to pass the cost to consumer or capture it in an appropriation. The payment is to be made in arrears, on the 21st of every month”, he stated.
Reacting to the development, Engr Gbenga Adebayo, chairman, ALTON, insisted that the new tax burden would be passed to subscribers.
“It is a strange move, it appears a bit unusual. exercise duty is supposed to be apportioned to goods and products, but we are surprised this is on Services.
“We will continue to support the government but ALTON, won’t be able to subsidy this on behalf of subscribers in addition to the 7.5% VAT making it 12.5% payable by subscribers to the federal government.
“We currently pay a lot of taxes, running into 39 of them, so we can add more to our existing burden. We won’t be able to absolve this on behalf of subscribers.
“The 5% Excise Duty will be paid by the subscribers. It will collected by the operators on all voice and data services including OTT and remitted to the Nigerians Customs”, he stated.
Elsewhere, Engr Ken Nnamani president of ATCON, said, “the proposed exercise duty do not comply with principle of taxation, fairness, certainty, convenience and efficiency”.
Nnamani represented by Mr Ajibola Olude, ATCON executive secretary, said FG has continued to turn a blind eye to the issue of foreign exchange, others challenges facing telecom operators in Nigeria.
He added that the telecom industry is bleeding yet the federal government want to exacerbate the plight of operators with additional taxation.
He appealed that the implementation of the exercise duty should be stepped down because many youths in Nigeria will lose their jobs.
He advised that the government should channel its efforts to developing other sectors.
Similarly, Chief Deolu Ogunbajo, president, National Association of Telecoms Subscribers (NATCOMS), said the government’s action is insensitivity and ill-timed.
“It is unfortunate that 5 percent exercise duty is coming again together with other 38 taxes.
He said, other countries in Africa paying 5% tax on telecommunications services do not have 39 others taxes.
In his words, “this is insensitivity, and irresponsible. Government should not kill the telecom industry”.
Telecom
Reps Approve NCC’s N479.508Bn Budget for 2026

House of Representatives, during Tuesday’s plenary, approved the sum of N479.508 billion budget for the Nigerian Communications Commission (NCC) for the 2026 fiscal year.

The resolution was passed after the clause-by-clause consideration of the report at the Committee of Supply.
While giving synopsis of the report, Peter Akpatason, chairman, House Committee on Communications, explained that the total sum of N479,508,260,000 is to be issued from the Statutory Revenue Fund of the Nigerian Communications Commission.
Out of the issued sum, N124,440,652,000 is meant for Recurrent Expenditure; N26,779,045,000 is for Capital Expenditure; N32,011,492,000 is for Special Projects, while the sum of N20 billion is for Transfer to Universal Service Provision Fund (USPF), N276,277,071,000 is for Transfer to Federal Government for the financial year ending 31st December, 2026.
Telecom
NCAN Commends NCC for Mandating Telcos to Compensate Subscribers for Poor Services

National Consumers Advocacy Network (NCAN), a consumer advocacy group focused on protecting the rights of consumers, has commended the Nigerian Communications Commission (NCC),for introducing a policy compelling telecom operators to compensate subscribers for poor network service.

In a statement issued on Tuesday and signed by Dr Tobi Olanrewaju, its president, the group described the directive as a bold and consumer-focused intervention.
The group noted that the move, which has already seen major telecom operators begin compensating subscribers with airtime credits, marks a shift from what it described as regulatory leniency to measurable accountability.
“For years, Nigerian telecom subscribers have endured suboptimal service quality with little or no consequence for operators,” the statement read.
“What we are witnessing under Dr Aminu Maida is a clear assertion that regulatory oversight must translate into tangible benefits for consumers. This is not merely about compensation; it is about restoring trust in the system.”
According to Olanrewaju, the policy’s provision for automatic compensation without requiring subscribers to lodge complaints demonstrates a strong understanding of the challenges faced by many Nigerians.
“This intervention acknowledges a fundamental principle that the burden of service failure should not rest on the consumer,” he said.
He added that linking compensation directly to actual service disruptions at the local level sets a new standard in regulatory practice.
The group also praised the Commission’s decision to monitor service quality at the Local Government Area level, describing it as a step towards capturing real user experiences rather than relying on general national data.
Olanrewaju further commended the Commission’s simultaneous push for telecom operators to invest in network upgrades, noting that the approach addresses both immediate and long-term concerns.
“While consumers receive immediate value for past deficiencies, the root causes of poor service are being systematically addressed,” he said.
The advocacy group urged telecom operators to embrace the directive as an opportunity to rebuild consumer trust and improve service delivery.
It also called on other regulatory agencies to adopt similar people-centred approaches in tackling systemic challenges across sectors.
“Dr Maida has demonstrated that regulation, when properly executed, can serve as a powerful tool for social and economic justice,” Olanrewaju added.
The group reaffirmed its support for the Commission’s ongoing reforms and called for sustained collaboration between regulators, operators, and consumers.
It added that the true success of the policy would be measured by lasting improvements in network performance across the country.
Telecom
Telcos Recover N2 Trillion following Crackdown on Indebted Subscribers

Telecommunications operators in Nigeria have reportedly recovered over N2 trillion from subscribers in a sweeping debt recovery campaign that has left millions unable to make calls due to unpaid airtime and data loans.

The aggressive enforcement follows new compliance requirements introduced by the Federal Competition and Consumer Protection Commission (FCCPC), which telecom operators reportedly failed to meet, according to The News Chronicle.
This led to the suspension of airtime and data lending services and triggered a nationwide push to recover outstanding debts.
As part of the measures, indebted subscribers have had their lines restricted from making calls until their loans are fully repaid.
The move has disrupted daily life across Nigeria, particularly for small business owners and workers who depend heavily on mobile connectivity.
The lending service, valued at over N400 billion annually, has long served as a financial lifeline for many Nigerians, especially those without access to formal credit systems.
However, its sudden suspension has forced users to seek alternative means to clear their debts or abandon their lines altogether.
Meanwhile, a legal dispute involving Nairtime Nigeria Limited has added another layer of complexity.
A Federal High Court in Abuja recently ordered MTN Nigeria and Airtel Nigeria to maintain access to key telecom infrastructure, including USSD and SMS services linked to the platform.
Despite the court’s interim injunction, lending services tied to the platform remain unavailable, indicating ongoing tensions between telecom providers, regulators, and fintech firms.
Industry stakeholders warn that the disruption highlights deeper challenges within Nigeria’s digital economy, where telecom infrastructure increasingly supports financial services.
Millions of users who rely on airtime and data borrowing remain disconnected, caught between regulatory policies, corporate disputes, and the need for affordable communication.
As pressure mounts, both regulators and telecom operators are expected to seek a resolution that balances consumer protection with uninterrupted access to essential digital services.
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