FG cracks down on roadside tax extortion with Police task force

By: Amarachi Okonkwo 

The Joint Revenue Board has announced a strategic partnership with the Nigeria Police Force to clamp down on illegal tax collection and dismantle unauthorised roadblocks nationwide, in a move aimed at improving Nigeria’s business climate and reducing the cost burden on transporters and consumers.

The initiative, disclosed by the Executive Secretary of the Board, Segun Adesokan, followed a high-level engagement with senior police officers.

 Adesokan said the collaboration aligns with the Board’s mandate to promote uniformity, transparency, and efficiency in revenue administration across the federation.

He explained that the crackdown forms part of broader fiscal reforms being championed by President Bola Tinubu, which are designed to shift the country’s tax framework toward equity and growth. 

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According to him, the reforms emphasise taxing prosperity rather than poverty, and profits rather than investments an approach intended to stimulate enterprise while safeguarding vulnerable populations.

A key component of the reform agenda is the prohibition of illegal tax practices, particularly the widespread use of roadblocks and unauthorised agents to collect levies along transport corridors.

 These practices, Adesokan noted, have long distorted supply chains by inflating logistics costs, which are ultimately passed on to consumers through higher prices of goods and services.

He recalled that the Board, at its 158th meeting in December 2023, issued a communiqué banning roadside tax collection and the use of unauthorised tax stickers nationwide. 

Building on that directive, a Model Harmonised Taxes and Levies Act already adopted by 15 State Houses of Assembly and under consideration in others seeks to criminalise cash-based tax collection, illegal checkpoints, and the involvement of non-state actors in revenue enforcement.

Industry stakeholders have consistently flagged such practices as a major bottleneck to trade efficiency, particularly for haulage operators moving goods across state lines.

Multiple checkpoints often lead to delays, extortion, and unpredictability in delivery timelines, undermining competitiveness and discouraging investment in logistics and manufacturing.

To address the enforcement gap, the Board has proposed the creation of a joint national task force with the police.

The task force is expected to operate across all states, working with federal and sub-national revenue authorities to identify, dismantle, and prosecute illegal tax operators.

Responding on behalf of the Inspector General of Police, Mohammed Abdul Suleiman, welcomed the initiative and reaffirmed the police’s commitment to tackling the economic and security risks posed by illegal roadblocks.

He said Commissioners of Police nationwide would collaborate closely with revenue authorities and sub-national tax agencies to eliminate the practice.

The police also stressed the importance of combining enforcement with stakeholder engagement, noting that some illegal collections are linked to local authorities and informal actors. Addressing these root causes, officials said, would be critical to achieving sustainable compliance.

Both institutions agreed to develop a comprehensive implementation framework, signalling what analysts view as a potentially significant reform for Nigeria’s business environment. If effectively executed, the initiative could reduce logistics costs, improve supply chain efficiency, and enhance investor confidence by curbing arbitrary taxation and strengthening regulatory certainty.