The National Association of Telecoms Subscribers (NATCOMS) is set to petition the National Assembly over the Federal Government’s renewed attempt to impose a five percent excise duty on telecommunications services.
The association will convene on Wednesday to finalize plans for the petition, which aims to prevent legislative approval of the controversial tax while the matter remains under legal review. The case is currently pending at the Lagos Division of the Federal High Court, with the next hearing scheduled for March 13, 2025.
NATCOMS President, Adeolu Ogunbanjo, emphasized the urgency of notifying lawmakers, stressing that the National Assembly must be made aware of the ongoing court case to avoid inadvertently passing the bill into law. “If we don’t inform them, the Assembly might unknowingly approve the tax, which would be disastrous for both subscribers and the industry,” Ogunbanjo warned.
The association criticized the proposed excise duty as excessive and burdensome, pointing out that telecom services are already subject to over 40 different taxes. “Imposing another tax will only increase the financial strain on subscribers,” Ogunbanjo added.
NATCOMS’ National Secretary and Legal Adviser, Bayo Omotubora, reiterated that the tax represents double taxation, noting that the court’s ruling is crucial. “Until the court makes a decision, implementing this tax would be illegal and unconstitutional. The government must respect the judicial process,” he stated.
The excise duty is part of a broader tax reform initiative introduced in 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.” If passed, it would apply to both postpaid and prepaid telecom services regulated by the Nigerian Communications Commission.
Originally proposed in 2022 under former President Muhammadu Buhari, the tax faced significant public opposition, leading to its suspension by President Bola Tinubu in July 2023 due to concerns over its potential impact on consumers and the economy. However, the government has revived the plan as part of its efforts to boost revenue amid economic challenges.
NATCOMS’ planned petition will stress the importance of awaiting the court’s verdict before any further action is taken on the excise duty, and will also highlight the economic and constitutional concerns surrounding the tax.
“We are not only fighting for the legality of this tax, but also to protect millions of Nigerians who rely on affordable telecom services,” Omotubora concluded.
With the court case pending and preparations for the petition underway, NATCOMS is urging the government to suspend any action on the proposed tax until the legal dispute is resolved.
