•Call for enlightenment campaign by FG •New laws reward lazy states, make fiscal federalism impossible ―Expert
BUSINESS owners in the country have called on stakeholders in the revenue collection ecosystem and security agencies to prevent them from enforcers of taxes, levies, rates and charges, who often illegally block roads and lock up shops, as the new tax regime becomes fully operational from January 1, 2026.
They called on the Joint Revenue Board (JRB) and other stakeholders to amp up the sensitisation of agents whose actions usually contravene the country’s tax laws.
Their call followed the resolve of the JRB to tackle the menace of multiple and illegal taxation carried out by the non-state actors.
Recall that in a communiqué issued at its 158th meeting, held in Abuja, on December 9 and 10, 2025, the board called on the office of the National Security Adviser, Nigeria Police Force and all relevant security agencies to take immediate steps towards eliminating illegal roadblocks mounted and operated along the nation’s road transport corridors for the purpose of collection of taxes, levies, rates and charges.
The board said such enforcement would ensure the integrity of the nation’s tax administration process, especially at the sub-national level.
“The board re-emphasises the outright abolition of the design, production, issuance and enforcement of all manner of road stickers and related instruments by both state and non-state actors and encourages the resistance of such Nigerians, and the reporting of all such promoters of the issuances of stickers and related instruments to security authorities for appropriate sanctions,” the board stated.
But despite those recent assurances from the board, Nigerians, especially businesses, continue to fret as the January 1, 2025 date approaches.
There are palpable fears, especially among business owners, running small and medium-sized ones, regarding their fates as the implementation of the new tax regime commences.
One of those concerns still remains the likelihood of state agents, using the new tax policy to witch-hunt and extort operators, who till now, are yet to have a full grasp of what the laws entail.
For instance, Fatai Ayoola, who runs a logistics business in Lagos, expressed fears of being confronted with more financial burdens, come January 2026, when the new tax regime is fully operational.
Ayoola, despite the assurance that the new tax regime has come to take care of multiple taxation, reduce tax burdens of low-income earners and small businesses, among other issues, expressed skepticism about it going in favour of small businesses like his.
“Those local government guys have always been a problem to businesses like us. They stop us at every corner, asking for one permit or the other, especially when out for delivery,” he stated.
He argued that rather than ask the public to resist some of these non-state actors in the revenue collection ecosystem, the board should have gone on a sensitisation drive with the aim of informing these agents on the new development and how contravening the new law could work to their advantage.
Ayoola added that the board was being unrealistic by urging the public to resist those non-state actors by reporting them to security agents.
“Do we, as businesses, have the power to resist them? No. The fact remains that these people are not discreet about this. They do it in the full glare of law enforcement agents and until such actions are criminalised and scapegoats are made of some of them, what we are likely to be seeing next year is added tax burden on businesses and citizenry.
“I think government needs to do more in terms of enlightenment, especially for our category of business to enable us fully understand what to expect next year,” he stated
Another business operator, Showumi Abbas, who is into printing business, also expressed fears about the fate that awaits his business come 2026.
“For instance, our clients have started asking for withholding tax, for every transaction, despite the fact that the volume of such transaction cannot be said to have falled under those expected to pay tax.
“For instance, they charge us withholding tax for a transaction that is even below N100,000 and when you protest they tell you that’s what the new law says. I believe the concerns will always be there until full implementation starts,” Abbas added.
The concerns of Adams Makinde, a Lagos-based fashion designer, is the fact that some of the local government council officials, where his shop is domiciled, still came a few days ago, to start preparing his mind and those of others small businesses in the area, about planned increment in some of the bills, such as Radio, TV and even lock-up levies they will be paying to the council, annually, as from next year.
“I had thought the new policy had harmonised all these levies. Having to grapple with levy increment from the local government and also the new tax regime, may affect this business that is still trying to recover from the various reforms of the federal government,” he added.
He believed what would happen next year is that businesses would still have some of these levies forced down their throats by the non-state actors.
But, a finance and public affairs analyst, Mr Biyi Adesuyi, argued that while some of the fears expressed above may be founded, his greatest fear is that the new tax would not allow for true implementation of fiscal federalism.
“While it is good that the new tax policy intends to harmonise the various taxes and bring more people into the tax net, it, however, favours some lazy regions or state governments.
“For instance, it means whatever you make from VAT, comprising accruals from cigarettes and even alcohol, would be shared by those states or regions vehemently opposed to the idea of having those items sold in their areas.
“Besides, you will notice a lot of businesses are gravitating towards some states and regions because they find such places secure. But what this means is that whatever is made from VAT from these businesses that are in those regions or states will still be shared by those lazy states, doing nothing to secure their areas.
“This is not fiscal federalism. With fiscal federalism, Rivers State governor should not be earning the same salary with his counterparts in either Kebbi or even Borno. Each state governor should be paid according to what they generate. That is how fiscal federalism is practised,” Adesuyi, who is also the Managing Director of Wealthgate Advisors, added.
A marketing communication practitioner and Chief Executive Officer of Creato Urban, Odion Aleobua, stated that while the tax reforms are welcome, he, however, argued that the distrust of the public towards government’s policies might be the reform’s greatest undoing.
“I’ll advise that some of the people promoting the policy for government should not be involved in such venture.
“For instance, when the government begins to tell the public that banks will be telling the amount of money individuals have in their accounts, the way Taiwo Oyedele said recently, the reform may be negatively impacted,” he stated.
Aleobua also shared Adesuyi’s concerns that part of the new policy is a way of rewarding those ‘lazy’ states that only rely on feeding fat on what accrues from the centre.
READ ALSO: Don’t see taxes as punishment, FIRS boss tells Nigerians
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