The National Association of Telecoms Subscribers (NATCOMS) has announced its intention to petition the National Assembly regarding the ongoing debate over a proposed five percent excise duty on telecommunications services. This move comes in response to the Federal Government’s renewed efforts to impose the tax, despite a legal challenge currently underway at the Lagos Division of the Federal High Court. The court proceedings, which aim to resolve issues pertaining to the tax, have been adjourned to March 13, 2025. Adeolu Ogunbanjo, the President of NATCOMS, has underscored the urgency of informing lawmakers about the pending court case, asserting that any legislative approval in favor of the excise duty would be detrimental to both subscribers and the telecommunications industry.
During an upcoming meeting, NATCOMS plans to finalize the arrangements for the petition while articulating concerns over the implications of the excise duty on subscribers. The association argues that the Federal Government should prioritize the judicial process, suggesting that any implementation of the tax before the court ruling would be not only premature but potentially unlawful. Ogunbanjo emphasizes that failing to communicate the ongoing legal proceedings to the Assembly could result in inadvertent legislative approval of the excise duty, which he describes as potentially disastrous. The assertion of excessive taxation reflects the group’s position that the telecommunications sector is already beleaguered by over 40 different taxes, further burdening consumers.
Bayo Omotubora, the National Secretary and Legal Adviser of NATCOMS, reinforced the sentiment that the proposed excise duty exemplifies double taxation. He pointed out that the ongoing legal situation should preclude any legislative action until a definitive ruling is made. The duty at hand is presented as a component of a broader tax reform initiative, which is encapsulated in a bill titled “A Bill for an Act to Repeal Certain Acts on Taxation and Consolidate the Legal Frameworks relating to Taxation and Enact the Nigeria Tax Act to Provide for Taxation of Income, Transactions, and Instruments, and Related Matters.” The argument posits that any movement toward the implementation of this tax might violate constitutional rules if carried out before the court’s decision.
This proposed five percent excise duty has not only attracted NATCOMS’ attention but has also been met with widespread public opposition since its introduction in 2022 during the administration of former President Muhammadu Buhari. Following considerable backlash from both the public and industry stakeholders, the then president suspended the tax in July 2023, recognizing potential repercussions on consumers and the economy at large. Despite this temporary reprieve, the current administration under President Bola Tinubu has revived efforts to reintroduce the tax as part of broader measures aimed at enhancing government revenues amid ongoing economic difficulties.
The implications of this renewed push for an excise duty are considerable, as it would apply to a wide range of telecommunications services, both postpaid and prepaid, regulated by the Nigerian Communications Commission. NATCOMS plans to use its petition to the National Assembly not only to highlight the pending court case but also to underscore economic and constitutional concerns surrounding the excise duty. The association’s advocacy extends beyond legal arguments; it aims to protect the interests of millions of Nigerians who rely on affordable telecommunications services. Ogunbanjo has been vocal about the need for the government to acknowledge the legal limitations surrounding the proposed tax until the current court dispute is settled.
In conclusion, the National Association of Telecoms Subscribers is actively mobilizing to address the threats posed by the proposed five percent excise duty on telecommunications services through legislative and legal channels. The ongoing legal battle is pivotal in shaping the outcome of this situation, and NATCOMS is determined to emphasize the critical need for the Federal Government to respect judicial authority. With preparations for the petition underway and the court case adjourned until March 2025, NATCOMS continues to advocate for the rights of subscribers, urging for a temporary suspension of any actions directed at imposing the excise duty until a definitive legal resolution is reached. The association’s structured approach underscores their commitment to the legal, economic, and social implications at stake, reflecting a broader concern about the sustainability of telecommunications services in Nigeria amidst heavy taxation.
