The Nigerian government has refuted claims of hiring “area boys” for tax collection and has reiterated its dedication to implementing reforms in fiscal policies and tax collection methods nationwide. Taiwo Oyedele, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, emphasized that the government is not recruiting individuals who are already involved in tax collection activities, whether legally or otherwise.
Oyedele made these statements in response to recent controversies surrounding tax collection practices, particularly the participation of informal groups known as “area boys.”
It is important to note that Nigeria currently has more than 40 taxes and levies, which are collected by states and local governments as authorized by law. These levies cover a wide range of areas, including road taxes for trucks, buses, and bicycles, as well as levies on wheelbarrows, kiosks, and shops.
Oyedele emphasized the prevalent issue of area boys who engage in the collection of taxes using coercive and unconventional methods, often resorting to harassment tactics. Despite the significant burden placed on small businesses, artisans, and transporters, the revenue generated from these taxes remains minimal.
To address these challenges, the government proposes to streamline and eliminate redundant taxes while harmonizing those that are deemed appropriate. The aim is to eliminate many of these taxes and harmonize a few of them, using mobile phones as a civil means of collection.
Oyedele clarified that his focus is on securing the cooperation of existing tax collectors, who may currently benefit beyond their official payments. The idea is to train these collectors to behave in a civilized manner, pay them decently, and have them drive and monitor compliance. This approach would result in lower payments for taxpayers, dignified treatment, increased government revenue, and overall societal benefits.
- Oyedele stressed the importance of finding a pragmatic resolution that considers both the legal and social aspects, with the goal of achieving a positive outcome that benefits all parties involved.
For more information on the activities of the Presidential Fiscal Policy and Tax Reforms Committee, individuals can visit the official website at fiscalreforms.ng.
