The Niger State governor, Mohammed Bago has officially prohibited the taxation of hawkers and other petty traders across the state.
This directive aims to alleviate the financial burdens on small-scale traders and curb unauthorized levies imposed at the local government level.
The statement was conveyed through the Chief Press Secretary (CPS) to the Governor, Mr. Bologi Ibrahim.
The governor expressed concern over the unfair taxation of petty traders and directed all Local Government Council Chairmen and councillors to immediately desist from such practices.
“We have observed with dismay how petty traders and hawkers are being exploited with multiple taxes. As a government, we have resolved that henceforth, no trader, no petty trader, should be taxed. Hawkers and petty traders are tax-free in Niger. Therefore, anybody found taxing them will be dealt with decisively for extortion,” he stated.
The Governor emphasized that Niger State already operates a centralized tax system, which explicitly exempts hawkers and petty traders from any form of taxation.
He condemned the exploitation of small traders through multiple tax levies.
What you should know
The informal sector in Nigeria often faces issues such as multiple and illegal taxation, which can hinder the growth of small businesses. Studies have highlighted that traders are subjected to various levies from different groups, leading to financial strain and reduced profit margins.
- Similar measures have been implemented in Anambra state, in October 2022, Anambra State Governor Chukwuma Soludo abolished taxes for wheelbarrow pushers, vulcanizers, and other petty hawkers, emphasizing the need to protect the livelihoods of the poor.
- Governor Soludo emphasized that these groups, often at the lowest economic levels, should not be subjected to taxation. He stated that wheelbarrow pushers, vulcanizers, and hawkers should cease paying any fees and should not be harassed
The governor also warned market unions against collecting unauthorized levies from these groups, stating that any union found guilty would be dissolved immediately.
- Also in Ebonyi State, Governor, Francis Nwifuru, directed the state’s Board of Internal Revenue to stop imposing levies and taxes on petty traders.
Nairametrics reported that Nigerians involved in the wholesale and retail trade, as well as the repair of motor vehicles and motorcycles, witnessed a staggering 98% increase in their total tax contributions to the nation’s coffers, with the total tax paid in 2023 hitting a record N253.07 billion.
