Telecom Subscribers to Petition MPs Over Controversial Tax Plan
The National Association of Telecoms Subscribers (NATCOMS) has announced plans to petition the Nigerian National Assembly, urging lawmakers to suspend approval of a proposed five per cent excise duty on telecommunications services while the issue remains mired in a legal battle.
The group, which represents millions of telecom users, will meet on Wednesday to finalise the petition. Their move aims to ensure the legislature does not pass the measure into law before the Lagos Division of the Federal High Court delivers its judgment, now scheduled for March 2025.
NATCOMS President Adeolu Ogunbanjo, speaking to The PUNCH, emphasised the need for swift action to prevent what he called a “disaster for subscribers and the telecom industry” should the excise duty advance prematurely. “If we don’t inform them that there is a pending court case, the Assembly might unknowingly pass the bill into law,” he warned.
The proposed tax, which forms part of a broader tax reform initiative, has been contentious since its introduction in 2022 under former President Muhammadu Buhari. Though temporarily suspended by President Bola Tinubu in 2023 following public outcry, the Federal Government has revived the measure as part of efforts to shore up revenue amid economic pressures.
Critics argue that the levy would further burden consumers already grappling with rising costs and an array of existing taxes. “Telecom services are subject to over 40 different taxes,” Ogunbanjo said. “Adding this will only increase the financial strain on subscribers.”
The association’s National Secretary and Legal Adviser, Bayo Omotubora, echoed this sentiment, describing the excise duty as unconstitutional and tantamount to double taxation. “The Federal Government must respect the judicial process. Implementing this tax while it is being challenged in court would be illegal,” he said.
The disputed levy, embedded within a proposed tax reform 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, would apply to prepaid and postpaid services regulated by the Nigerian Communications Commission.
NATCOMS has pledged to highlight the economic and constitutional concerns surrounding the excise duty in its petition to lawmakers. The group argues that affordable telecom services are vital for millions of Nigerians and that the tax risks deepening inequality by making essential services less accessible.
“The government must pause and reflect on the broader implications of this tax—not just its legality but its impact on everyday Nigerians who depend on affordable communication,” Omotubora stated.
As the court battle continues, NATCOMS is calling on the Federal Government to respect due process and suspend all actions related to the excise duty until the judiciary resolves the matter.
