The Federal Government has revoked the 5% excise duty imposed on telecommunications' voice and data services.

The National Orientation Agency (NOA), which announced the revocation of the telecom tax on voice and data services in a statement issued on Thursday.

The agency said the move is expected to ease cost pressures for millions of mobile phone and data users in the country.

The tax, which applies to both voice calls and data subscriptions, was introduced under former President Muhammadu Buhari.

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According to the statement, Aminu Maida, Executive Vice Chairman of the Nigerian Communications Commission (NCC), disclosed that President Bola Tinubu ordered the removal of the tax during discussions on the recently passed Finance Act.

According to Maida, the President's intervention was aimed at preventing additional financial strain on citizens while supporting the digital economy.

"The development is expected to bring relief to over 171 million active telecom users across the country, many of whom have faced a 50% tariff increase implemented earlier this year," the statement added.

The 5% excise duty was first announced in 2022, with the justification by the government that it was part of its effort to boost revenue generation amidst dwindling oil earnings.

The Ministry of Finance at the time argued that the levy was in line with global taxation practices.

Telecom operators, under the umbrella of the Association of Licensed Telecom Operators of Nigeria (ALTON), however, warned that the policy would be counterproductive.

The ALTON noted that Nigeria already had one of the highest tax burdens on the telecommunications sector in sub-Saharan Africa.