By Favour Pius
The Federal Government has concluded plans to introduce fresh regulations aimed at curbing the proliferation of illegal taxes, levies and multiple charges imposed by state governments and local government councils across the country.
The move is expected to address growing complaints from businesses, manufacturers, transport operators and investors over what stakeholders described as arbitrary taxation and revenue collection practices hindering economic growth and increasing the cost of doing business in Nigeria.
Industry operators have repeatedly accused some state and local government agencies of imposing overlapping taxes, unauthorised levies and road charges on businesses despite existing tax laws and regulatory frameworks.
Findings showed that the planned regulations would provide clearer guidelines on approved taxes and revenue collection powers of sub-national governments, while also strengthening enforcement against illegal collections.
Economic analysts said the development could improve the business environment, encourage investment and reduce pressure on small and medium-scale enterprises already struggling with inflation, high energy costs and foreign exchange challenges.
A Lagos-based tax consultant noted that multiple taxation has remained one of the biggest concerns for investors and manufacturers operating in Nigeria.
According to him, many businesses face repeated demands from different agencies at state and local government levels, often leading to disputes, disruptions and increased operating costs.
The proposed regulations are also expected to support ongoing fiscal reforms targeted at improving tax administration, increasing transparency and harmonising revenue collection processes across the federation.
Business groups have consistently called on the Federal Government to strengthen coordination among tax authorities and eliminate illegal revenue collection practices capable of discouraging investment and slowing economic activities.
Analysts noted that addressing multiple taxation could help improve Nigeria’s competitiveness, particularly as the government intensifies efforts to attract local and foreign investments into critical sectors of the economy.
