The Federal Government of Nigeria has reintroduced a 5% excise duty on telecom services which is applicable on mobile telephone services (GSM), fixed telephone, and internet services, both postpaid and prepaid at the rate of 5% as part of the fiscal measures to be implemented this year. This policy is coming after the government had previously suspended the duty in March 2023. Analysts believe that the duty may result in an increase in the cost of telecom services, which may negatively affect consumers’ purchasing power and demand for such services as telecom companies may pass on the cost of the excise duty to consumers.
