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The National Association of Telecoms Subscribers (NATCOMS) has announced plans to petition the National Assembly, urging lawmakers to halt any legislative approval of the proposed five per cent excise duty on telecommunications services.
The association will hold a meeting this Wednesday to finalize the petition, which seeks to address the Federal Government’s renewed efforts to impose the tax despite an ongoing legal dispute. The case is currently before the Lagos Division of the Federal High Court and has been adjourned to March 13, 2025.
Judicial Process Must Be Respected
Speaking on Monday, NATCOMS President Adeolu Ogunbanjo emphasized the importance of notifying the National Assembly to prevent premature approval of the tax.
“We must inform the National Assembly about the pending court case. If they unknowingly pass the bill into law, it will be disastrous for subscribers and the telecom industry,” Ogunbanjo warned.
He criticized the excise duty as excessive and argued that it adds an unnecessary burden to subscribers, who already face over 40 different taxes on telecom services.
The association’s National Secretary and Legal Adviser, Bayo Omotubora, reiterated that the proposed tax constitutes double taxation and violates constitutional principles.
“The Federal Government must respect the judicial process. Implementing this tax before the court’s judgment would be illegal and unconstitutional,” Omotubora stated.
Background on the Proposed Tax
The five per cent excise duty is part of a broader tax reform initiative outlined in a proposed bill titled “A Bill for an Act to Repeal Certain Acts on Taxation and Consolidate the Legal Frameworks Relating to Taxation.” If enacted, the tax would apply to telecom services, including both prepaid and postpaid services, under the purview of the Nigerian Communications Commission (NCC).
Introduced in 2022 during former President Muhammadu Buhari’s administration, the tax faced significant public backlash. In July 2023, President Bola Tinubu suspended the proposal, citing its potential adverse effects on consumers and the economy. However, the government has recently revived the plan as part of broader efforts to address revenue shortfalls amid economic challenges.
Protecting Subscribers and the Industry
NATCOMS’ petition will underscore the economic and constitutional implications of the excise duty while advocating for affordable telecom services.
“This is not just about legality; it’s about safeguarding millions of Nigerians who rely on affordable telecom services,” said Omotubora.
The association has called on the Federal Government to suspend any further action on the excise duty until the court delivers its ruling.
NATCOMS maintains that imposing the tax prematurely would not only undermine the judicial process but also exacerbate the financial burden on subscribers, further straining an already fragile economy.
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