Debates have sparked in Nigeria over the government's intent to reintroduce a 5% tax on telecom services.

Telecom Sector's Objections

The Association of Licensed Telecom Operators of Nigeria raises concerns about the impact of the 5% tax. Chairman Gbenga Adebayo stated that it will increase the existing financial burden on users. ALTON and other operators deem the tax introduction inappropriate given the current economic conditions.

5% Tax Background

The 5% tax was first introduced in 2022 during President Buhari's administration but was suspended in July 2023. Attempts to reintroduce it surfaced in May 2024 in the context of international loan conditions. Telecom companies continue to push for tariff increases to offset inflation.

Legal Actions

The National Association of Telecommunications Subscribers announced plans to take legal action against the government. President Prince Adeolu indicated that a previous lawsuit will be revived if the tax is introduced.

The telecom sector's reaction raises questions about the impact of such measures on the economy and consumers.