Telecoms Subscribers to Petition National Assembly Over Controversial 5% Tax

NATCOMS has called on stakeholders to join its fight against the tax, describing it as an unnecessary burden on telecoms subscribers and the industry.

Abuja, Nigeria – The National Association of Telecoms Subscribers (NATCOMS) has announced plans to petition the National Assembly over the Federal Government’s renewed push to impose a 5% excise duty on telecommunications services.

The association, representing millions of telecom users in Nigeria, is set to meet on Wednesday to finalize its petition, urging lawmakers to halt any legislative approval of the proposed tax while a court case challenging its implementation is ongoing.

The case, currently before the Lagos Division of the Federal High Court, has been adjourned to March 13, 2025. NATCOMS President, Adeolu Ogunbanjo, told The newsmen on Monday that the petition is necessary to prevent the National Assembly from unknowingly passing the tax into law.

“We are meeting this Wednesday to finalize the arrangement to write the National Assembly. If we don’t inform them that there is a pending court case, the Assembly might unknowingly pass the bill into law. That would be disastrous for subscribers and the industry,” Ogunbanjo said.

NATCOMS has consistently criticized the proposed excise duty as excessive and detrimental to telecom users. Ogunbanjo noted that telecom services are already subject to over 40 different taxes, and adding another levy would significantly increase the financial burden on subscribers.

The association’s National Secretary and Legal Adviser, Bayo Omotubora, described the tax as double taxation and unconstitutional. “The case is before the Lagos High Court and has been adjourned to March 13, 2025. Until a decision is made, implementing this tax would be illegal and unconstitutional. The Federal Government must respect the judicial process,” Omotubora said.

The 5% excise duty is part of a broader tax reform initiative outlined in the proposed “Nigeria Tax Act.” The bill seeks to consolidate tax laws and impose taxes on various transactions, including telecom services regulated by the Nigerian Communications Commission.

Introduced in 2022 under former President Muhammadu Buhari, the tax faced public backlash, leading to its suspension in July 2023 by President Bola Tinubu. However, the government has recently revived the plan to boost revenue amidst economic challenges.

NATCOMS emphasized that the government must wait for the court’s decision before proceeding with the tax. “We are not just fighting for the legality of this tax but also to protect millions of Nigerians who rely on affordable telecom services,” Omotubora added.

The association’s petition to the National Assembly will highlight the ongoing legal battle and the economic implications of the proposed tax. “The Federal Government must respect the judicial process and suspend any action on this tax until the matter is resolved in court,” Ogunbanjo said.

NATCOMS has called on stakeholders to join its fight against the tax, describing it as an unnecessary burden on telecoms subscribers and the industry.