The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has assured operators and stakeholders in Nigeria’s haulage and logistics sector that the ongoing fiscal reform would eliminate the burden of multiple taxation and illegal roadblocks that have burdened the transport industry for decades.
Speaking at the 11th edition of the Haulage & Logistics Magazine yearly conference and exhibition 2025 in Lagos, Oyedele described the reforms as “the most significant and consequential since independence,” aimed at addressing systemic inefficiencies that have inflated transportation costs and worsened food inflation across the country.
Oyedele painted a grim picture of the challenges facing transporters, revealing that operators spend between N500,000 and N700,000 in levies for a single trip from northern Nigeria to the south.
“There was a transporter who diligently collected all the stickers required along his route. When he was done, he made a video showing 73 different stickers,” he said, adding that such practices directly fuel Nigeria’s high food inflation.
He noted that the gap between rural and urban food inflation, driven largely by transport costs, stands at over five per cent, compared to less than one per cent in most developed economies.
“These problems were not created by God or the United Nations or the West. They are self-inflicted, and it is also up to us to remove them,” he stated.
While Nigeria officially recognises over 60 forms of taxes and levies, Oyedele disclosed that the actual figure, when informal and illegal charges are considered, exceeds 200. He described the situation as counterproductive to economic growth and job creation.
“Some of those nuisance levies are even in our constitution. When it was written, some wise men and women decided to include bicycle tax, radio and television levies,” he said.
He revealed that amendments have been proposed to the National Assembly by the fiscal reform committee to remove such obsolete taxes from the constitution and cap the total number of taxes at a single-digit figure.
Oyedele said the reforms prohibit physical barriers and cash collection for tax purposes—a move expected to eliminate extortion and delays along major transport routes.
“Under these reforms, no one should physically block roads or collect cash in the name of tax,” he emphasised, recounting how local government officials once confiscated a widow’s sewing machine over a N400 levy.
“In which decent nation would you treat your most vulnerable like that? It does not make sense,” he lamented.
According to him, the reforms offer significant relief for small businesses and low-income earners. From January 2026, companies with a yearly turnover of N100 million or less will be exempted from corporate income tax, while individuals earning N100,000 or below monthly will no longer pay Pay-As-You-Earn (PAYE) tax.
Middle-income earners, earning between N100,000 and N1.9 million monthly, will also enjoy tax cuts of between N30,000 and N50,000 monthly. The maximum personal income tax rate will be capped at 25 per cent—lower than rates in Ghana, Kenya, South Africa, and the United Kingdom.
To cushion the effect of high living costs, the reforms introduce zero-rated Value Added Tax (VAT) on essential goods and services such as food, health, education, transport, and accommodation.
Oyedele clarified that zero-rating allows producers to reclaim VAT paid on inputs, thereby reducing hidden costs in final prices. “For instance, if you produce bottled water, any VAT you paid in the process will be refunded 100 per cent,” he explained.
Responding to public concern over a proposed five per cent fuel levy, Oyedele clarified that the surcharge will not take effect in January 2026, but only when certain economic conditions are met—such as naira appreciation or a five per cent drop in crude oil prices.
He cited the success of the Road Infrastructure Tax Credit Scheme, under which Dangote Industries rehabilitated the Apapa Road for N70 billion—far below the government’s estimate of N125 billion.
Oyedele dismissed fears surrounding the requirement of Tax Identification Numbers (TIN) for bank accounts, explaining that the provision has been in effect since January 2020.
To protect taxpayers from harassment, the reforms will establish an Office of the Tax Ombudsman, mandated to resolve complaints within 14 days at no cost.
On his part, the convener of HAULMACE, Alfred Okugbeni, welcomed the reforms, describing the haulage industry as “one of the biggest beneficiaries,” while urging the government to ensure strict implementation.
