Informal traders and commercial vehicle drivers in Nigeria are urging the government to implement a single, unified tax payment system to eliminate the burden of multiple levies, which they say lead to harassment, exploitation, and financial strain. The call comes amid concerns over unchecked taxation, particularly in Lagos, where both authorized and unauthorized collectors impose numerous levies on businesses and transport operators.
Currently, roadside traders and drivers face frequent demands for payment at various checkpoints. Many believe this chaotic tax system fuels corruption and inefficiencies in revenue collection, making it difficult for them to operate their businesses smoothly. While the government has introduced tax reform bills to address these challenges, there is growing skepticism about whether the changes will bring real relief.
A commercial driver working with an interstate transport company described the financial burden of multiple tax points along major routes. He explained that drivers pay fees in Lagos, then again at the Benin Bypass, and once more at the Niger Bridge, among other locations. He stressed the need for a system where drivers make a single payment that covers all levies nationwide, preventing unnecessary harassment.
A trader at Lagos’ Mile 12 Market echoed similar frustrations, revealing that he pays a monthly fee to informal tax collectors, who also demand daily levies. He lamented that traders and hawkers are frequently forced to comply or risk having their goods seized. Many traders struggle to make a profit after paying these unofficial taxes, raising concerns about the economic viability of small businesses under the current tax regime.
The Nigerian government recently introduced tax reform bills designed to streamline tax collection and eliminate multiple levies. Once approved by the Senate and signed into law, these reforms are expected to improve fiscal policies, enhance transparency, and optimize revenue collection. The proposed changes also aim to modernize tax laws and introduce digital systems to track payments more effectively.
Advocates of the reform stress that a more transparent tax system, powered by digital technology, is essential to addressing inefficiencies and curbing corruption. A tax expert pointed out that modern digital tools could help reduce revenue leakages and improve accountability. However, many traders and drivers remain cautious, fearing that new laws might not be enforced effectively or could be manipulated to benefit a few powerful interests.
For informal traders and commercial vehicle drivers, a unified tax system would be a significant step toward financial stability and business security. They argue that an organized, predictable taxation framework would allow them to focus on their businesses without fear of extortion or intimidation from multiple tax collectors.
Despite the promise of reform, the success of these measures will depend on the government’s ability to implement and enforce them without loopholes that allow corruption to persist. Stakeholders insist that addressing these issues is crucial to fostering an economic environment where small businesses and transport operators can thrive without unnecessary financial burdens
