The National Association of Telecoms Subscribers is escalating its opposition to the Federal Government’s plan to impose a 5% excise duty on telecom services.
By writing to the National Assembly, NATCOMS aims to prevent legislative endorsement of the tax while the matter is still under judicial review.
The ongoing legal case at the Federal High Court in Lagos, which challenges the legitimacy of this tax, has been adjourned until March 13, 2025, leaving the issue unresolved.
This was disclosed by the President of NATCOMS, Adeolu Ogunbanjo, on Monday, highlighting the urgency of notifying lawmakers.
NATCOMS maintains that the Federal Government should hold off on any further actions to implement the 5% excise duty on telecom services until the Federal High Court delivers its judgment.
“We are meeting this Wednesday to finalise the arrangement to write the National Assembly. If we don’t inform them that there is a pending court case, the Assembly might unknowingly pass the bill into law. That would be disastrous for subscribers and the industry,” he stated.
NATCOMS criticised the tax as excessive and insensitive. “Telecom services are already subjected to over 40 different taxes. Adding this will only increase the burden on subscribers,” Ogunbanjo said.
The National Secretary and Legal Adviser of NATCOMS, Bayo Omotubora, reaffirmed the group’s opposition to the 5% excise duty on telecommunications services, arguing that it amounts to double taxation. The association contends that subscribers are already subject to various taxes and levies, making the additional duty an undue financial burden.
“The case is before the Lagos High Court and has been adjourned to March 13, 2025. Until a decision is made, implementing this tax would be illegal and unconstitutional. The Federal Government must respect the judicial process,” Ogunbanjo stated.
The five per cent excise duty is part of a broader tax reform initiative under a bill titled “A Bill for an Act to Repeal Certain Acts on Taxation and Consolidate the Legal Frameworks relating to Taxation and Enact the Nigeria Tax Act to Provide for Taxation of Income, Transactions, and Instruments, and Related Matters”.
The proposed 5% excise duty on telecommunications services, covering both postpaid and prepaid services regulated by the Nigerian Communications Commission, has faced persistent opposition since its introduction in 2022 during former President Muhammadu Buhari’s administration.
Following widespread public backlash, the tax was suspended in July 2023 by President Bola Tinubu, citing concerns about its adverse effects on consumers and the economy.
However, the government has now revived the proposal to address revenue shortfalls amid ongoing economic challenges. This revival has reignited debates over its fairness and potential consequences for the telecom sector and subscribers.
