Nigerians may soon have to pay more for calls and data subscriptions
Nigerians may soon face another cost hike, this time with a new 5% excise tax after a 40% tariff increase earlier this year.
After a painful 40% hike in data and voice tariffs earlier this year, Nigerian telecom subscribers might soon face yet another increase — this time from a 5% excise tax approved by the Senate under the Nigeria Tax Bill 2024.
If signed by the Nigerian President, Ahmed Tinubu, into law, your next recharge could cost noticeably more.
Kelechi Edeh
The tax isn’t new. It was first introduced under the Finance Act of 2020 during former President Buhari’s administration to widen the tax net. But after heavy criticism, it was suspended in July 2023 by President Tinubu, who warned it could worsen inflation and restrict digital access, especially for low-income users. Fast forward to May 2025, and the Senate has revived it as part of a renewed push to boost non-oil revenue and close Nigeria’s growing fiscal gap.
But this comes at a fragile moment for telecoms. Operators like MTN Nigeria and Airtel Africa are only just recovering from a tough economic stretch. MTN posted a ₦392.7 billion ($244 million) loss in 2024 before bouncing back with a ₦133.7 billion ($83.1 million) profit in Q1 2025. Airtel Africa also reported $661 million in pre-tax profit for the year ending March 2025, gains largely driven by the earlier price hike, increased data usage, and ongoing network investments. Now, operators warn that the new tax could unravel those fragile gains.
And it’s not just about profit margins. Telecom companies already pay up to 54 different taxes across federal, state, and local levels, according to the Association of Licensed Telecom Operators of Nigeria (ALTON). “There’s no room to absorb more costs,” said ALTON Chairman Gbenga Adebayo. “The burden will fall on the consumer.”
Consumer rights groups agree. They argue that services like the internet and calls shouldn’t be taxed like luxury goods. In an economy already under pressure, even a small extra charge can sting. Businesses are doubling staff data allowances just to stay operational, and household data spending is climbing fast.
Despite rising prices, Nigerians used over 1 million terabytes of data in January 2025, the highest ever recorded. This marks a 93% increase from 517,670 terabytes in January 2023, as reported by Punch. The increase shows more people are going online for work, education, and entertainment. But if prices keep going up, access could be at risk.
The bill is now waiting for approval before reaching the president.
Kelechi Edeh
