The National Association of Telecoms Subscribers (NATCOMS) is gearing up to take legal action against the proposed 5% excise duty on telecom services. The case is currently in court, with the next hearing scheduled for March 13, 2025. In preparation, NATCOMS plans to convene this Wednesday to organize a petition to the National Assembly, aiming to halt any approval of the tax until the court delivers its ruling. They argue that the government should respect the judicial process and refrain from implementing the tax prematurely.
NATCOMS President Adeolu Ogunbanjo has emphasized that enforcing the tax while the case is still pending would be unconstitutional and place an undue burden on consumers. He pointed out that telecom services are already subject to over 40 different taxes, making the additional excise duty particularly onerous.
NATCOMS’ legal adviser, Bayo Omotubora, also criticized the proposed tax, labeling it as a form of double taxation. He warned that it would negatively impact millions of Nigerians who depend on affordable telecom services.
The proposed excise duty is part of a larger tax reform bill, but it has faced strong opposition from various industry stakeholders. Organizations such as the Association of Licensed Telecom Operators of Nigeria (ALTON) and the Association of Telecommunications Companies of Nigeria (ATCON) have voiced their concerns, arguing that the tax would further strain both telecom operators and consumers.
ALTON’s chairman, Gbenga Adebayo, described the tax as insensitive, especially given the current economic challenges. Tony Emoekpere from ATCON echoed these sentiments, stating that the tax would exacerbate the difficulties already faced by the industry.
The 5% excise duty was initially introduced in 2022 during the Buhari administration but was suspended in July 2023 by President Bola Tinubu following significant backlash. The government has now reintroduced the tax as part of a broader tax overhaul, sparking renewed concern across the telecom sector.
