ATCON Slams Proposed 5% Excise Duty on Telecoms, Warns of Heavy Burden

The Association of Telecommunications Companies of Nigeria (ATCON) has expressed strong opposition to the proposed reintroduction of a 5% excise duty on the telecommunications sector, warning that the tax could place a heavy burden on the industry and negatively impact consumers. ATCON cautioned that the tax would increase costs for users and hinder growth in a sector crucial to Nigeria’s digital economy.

ATCON President, Tony Emoekpere, voiced concern over the timing of the proposal, which comes amidst ongoing economic challenges. “We had assurances from the former minister that this issue was settled. It’s alarming to see it re-emerge now, especially as the industry has been advocating for a tariff increase to cope with rising operational costs. Instead, we are faced with a price hike that offers no benefit to the sector,” Emoekpere said during an interview with Hi-Tech.

Emoekpere revealed that ATCON plans to engage the Ministry of Communications to understand the reasoning behind the sudden reappearance of the excise duty proposal. “The previous minister successfully shelved this idea, so it’s surprising to see it come up again. We will reach out to the ministry to clarify and push to prevent its implementation,” he added.

Beyond rejecting the tax, Emoekpere called on the federal government to prioritize supporting the telecom sector, which plays a pivotal role in Nigeria’s economy. He urged the government to focus on lowering operational costs for telecom operators rather than imposing additional taxes.