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Lagos ‘Agberos’ generate annual revenue of N123 billion, report says

Suzanne Oyebola by Suzanne Oyebola
July 22, 2021
in Business News, Spotlight
Lagos ‘Agberos’ generate annual revenue of N123 billion, report says
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“If Lagos Agberos were to constitute themselves into a state, they would be richer than 35 Nigerian states, second only to their home base, Lagos state.” – Anonymous

‘Agberos’ in Lagos generate an estimated annual revenue of N123.078 billion amassed from daily road use taxes levied on bus drivers, tricycle riders and motorcycle operators in the state.

This is according to a recent research report by the International Centre for Investigative Reporting (ICIR).

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READ: Oyo State IGR rose to N15 billion in 2 years without tax raises – Seyi Makinde

An overview of the figures

Levies on commercial buses (danfo)

  • Each commercial vehicle driver pays at least N3,000 to Agberos as ticket fee.
  • There are an estimated 75,000 commercial buses operating in Lagos, according to the Lagos Metropolitan Area Transport Authority (LAMATA).
  • Estimated daily total collection:  N225 million
  • Estimated monthly total collection:  N6.75 billion
  • Estimated yearly total collection:  N82.125 billion

READ: FIRS announces N4 trillion revenue, as Fowler seeks law to jail Tax Evaders 

Levies on Tricycle operators (keke napep)

  • Each keke napep rider pays at least N1,800 to Agberos per day.
  • There are an estimated 50,000 tricycles operating in Lagos, according to Techcabal.
  • Estimated daily total collection:  N90 million
  • Estimated monthly total collection:  N2.7 billion
  • Estimated yearly total collection:  N32.85 billion

Levies on motorcycle operators (okada)

  • Each okada rider pays at least N600 to Agberos per day.
  • There are an estimated 37,000 okada riders operating in Lagos, according to Motorcycle Operators Association of Lagos State (MOALS).
  • Estimated daily total collection:  N22.2 million
  • Estimated monthly total collection:  N666 million
  • Estimated yearly total collection:  N8.103 billion

READ: Nigerian states generate N1.31 trillion IGR in 2020 as Lagos dwarfs others

The total annual revenue from the three major modes of transport in Lagos state amounts to N123.078 billion.

The ICIR report admitted that these figures may yet be underestimated as daily levies on the transporters are much higher in some parts of Lagos including Mushin, Isolo, Itire/Ikate among others.

Nigerian states with the highest Internally Generated Revenue (IGR) in 2020

  • Lagos State recorded the highest Internally Generated Revenue of N418.99 billion, accounting for 32.1% of the total, closely followed by Rivers State with N117.19 billion.
  • Other states with the highest IGR in 2020 include Abuja (N92.06 billion), Delta (N59.73 billion), Kaduna (N50.75 billion), Ogun (N50.75 billion), and Oyo State (N38.04 billion).

As the data shows, Lagos Agberos surpassed all other states besides Lagos in revenue generation beating oil-producing Rivers State by a handsome N5.89 billion naira.

READ: MDAs illegally withholding N1.2 trillion from FG – Fiscal Responsibility Commission

Where is the money?

The report found no trace that much of this revenue gets into government coffers as the money was not accounted for in the state’s annual financial statements.

Also, the report revealed that “although the Lagos State Internal Revenue Service (LIRS) says on its website that ‘road taxes’ are among the 25 taxes that are collected by the state government….the government agency provides no evidence on the website that road taxes are being collected by the state government.”

The report further revealed that although some of the revenue was being remitted to the National Union of Road Transport Workers (NURTW) and to the rival union RTEAN, the bulk of the money being generated was most likely completing its journey in private pockets.

“The [motor park] chairman takes the huge chunk of the money, shares the rest to his subordinates and leaves little in an account operated by his union,” it stated.

Why is the government looking the other way?

The general consensus is that the ‘Agbero-industry’ thrives so well in Lagos because it is backed by powerful politicians who call in return favours to bully opponents and perpetuate violence during elections. It has also been alleged that many of these ‘godfathers’ are direct beneficiaries of the scheme.

Bottomline

The Lagos state government loses a great deal of revenue annually to these non-state actors. Suffice to say that these monies could have been channelled into critical infrastructure projects in the state.

From the research data, it is also clear that Lagos and indeed Nigeria can function effectively without the need to borrow as much if the nation took the issue of taxes more seriously and plugged holes through which corrupt elements in the system syphon government revenues. Advanced countries with no crude oil resources function efficiently on tax revenues and even give financial aid to Nigeria. Why then is Nigeria’s case different?

 

Read the full ICIR report here.


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Tags: Lagos Agbero
Suzanne Oyebola

Suzanne Oyebola

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Comments 10

  1. Tonnie says:
    July 22, 2021 at 12:25 pm

    This money is use in purchasing small catch of arms, and the chairmen borrow armed robbers money to buy guns, have you ever heard agbero chairmen robbed? Nigeria politicians and traditional rulers are benefits from this proceed, that’s why the government cannot proscribe agbero, the interest of drivers they claim to protect, all to imporvrish them.

    Reply
    • vodina egbe says:
      July 22, 2021 at 1:47 pm

      such huge revenue is the reason, agbero system will not be scraped.

      Reply
  2. Popoola saheed says:
    July 22, 2021 at 1:29 pm

    The research is underestimated ,I hold no grudge to the collections of such revenues but what are the using the money for , welfare of their members noting to show for ,maintenance of road noting, God have mercy on my father’s land

    Reply
  3. Kenneth says:
    July 22, 2021 at 1:32 pm

    These people cannot be non state actors when they operate within the full view and with the blessings of Lagos State actors. They are state actors period!

    Reply
  4. Shonuyi Gbenga says:
    July 22, 2021 at 6:57 pm

    Let the Agberos be totally banned in all the state with high revenue siphon to politicians and chairman of the garages in the state.
    Let their function be taken over by the Local Government and use all these high revenue for the development of infrastructure to the grassroots in their states.
    I think with this development there will be more employment for the youths and well spread infrastructure to the entire population for the country at large.

    Reply
  5. Ronald Akin says:
    July 22, 2021 at 10:00 pm

    No danfo driver can boast of a quarter piece of land because their profits goes to the pockets of the agberos, imagine d so called agbero leaders sitting in an office, doing nothing but goes home with millions of naira daily, this is wickedness before God and man, anyone that created agbero should think again and have mercy on d drivers and their families, please i beg u for God’s sake

    Reply
  6. David says:
    July 23, 2021 at 12:29 am

    This is one of the obvious indicators of underdevelopment where individuals are more powerful than institutions. It’s absurd to know that billions are forced from you and me through indirect taxation yet we die everyday on these roads. I pray the chicken comes home to roost soon.

    Reply
  7. Stanley says:
    July 23, 2021 at 8:31 am

    Most countries that depend on tax revenues do not have the kinds of multiple leakages we have in Nigeria, which is the reason even the oil revenues and borrowings don’t seem to be enough. And I don’t think any amount of revenue would be enough to meet our basic needs as long as these leakages are not plugged.

    Reply
  8. Akin James says:
    July 23, 2021 at 11:13 am

    its preferable for the government to take over,so the higher money been generated will at least be benefited for the society at large, and surely it will be leveraged to favor the Driver and owners,not just the agbero that barely does nothing.

    Reply
  9. Muo Tovia says:
    February 10, 2022 at 4:19 pm

    Excellent write up Suzanne, please how can I get in touch with you? I am currently working on a project centered on the Agbero system and would benefit from your expertise.

    Reply

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