Minister of Communications and Digital Economy Isa Pantami announced that President Major General Muhammadu Buhari (retd.) has approved exempting the digital‑economy sector from a five‑percent excise duty. Pantami disclosed this to journalists on Tuesday during a briefing by the Presidential Review Committee on Excise Duty in Abuja.
On 5 September 2022, Pantami had suspended the imposition of the five‑percent excise on the sector, explaining that “41 categories of taxes, levies and charges are already in the digital‑economy sector; hence there is no justification for an additional excise.” He emphasized that the telecom industry is already heavily taxed and that further burden would damage a sector that contributes hugely to Nigeria’s economy. “We increased revenue generated by 594 percent, from N51 billion quarterly to N481 billion quarterly,” he noted, adding that this is the only sector where service prices have been reduced. “There is no justification for the government to impose more burden on its poor citizens.”
Pantami warned that many micro‑, small‑ and medium‑size enterprises depend on the sector for survival, and that a tax increase would take a toll on these businesses. Consequently, on 6 March, President Buhari approved the exemption of the digital‑economy sector from the five‑percent excise duty, citing the potential harm to Nigerian citizens.
In his remarks, Executive Vice Chairman of the Nigerian Communications Commission Umar Danbatta reiterated the commission’s commitment to improving the telecom industry. He highlighted that reducing data costs has been a primary target, noting that the average price of one gigabyte of data has fallen from N350 to N335. Danbatta also called on Nigerians to report any mobile network operators charging exorbitant prices for data.
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