Up goes the price of talk and data as Nigerian government applies new 7.5% VAT

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Nigerian telecoms subscribers are now paying more for calls and data services as government applies the new 7.5% VAT increased from 5%. This follows the signing into law of the Finance Bill by President Muhammadu Buhari last month January 13.

Telcos started the implementation of the new VAT February 1.

Chairman of Association of Licensed Telecommunications Operators of Nigeria (ALTON), Gbenga Adebayo, said telcos have notified subscribers across all the networks of the new rates. The operators assured Nigerians that implementation of the new VAT will not negatively impact on tariff transparency and quality of service.

“Further to the assent of the Finance Bill by President Muhammadu Buhari, which reviewed the Value Added Tax (VAT) from 5 per cent to 7.5 per cent, ALTON wishes to notify consumers that our members will begin applying the new VAT rate on all purchased telecommunication products and services with effect from 1st

According to the president, the new Finance Law is “specially designed to create a truly enabling environment for business and investment by the private sector.”

The new law is part of the country’s overall plan to reform its taxation regulations, and align the country’s tax regime with global best practices in a way that will support micro, small and medium scale enterprises in accordance with government’s economic reforms and ‘Ease of Doing Business.’


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