The Lagos State House of Assembly has conducted a crucial public hearing on a proposed bill aimed at harmonizing taxes and levies across the state. The legislation seeks to overhaul the revenue system, putting an end to multiple taxation, illegal roadblocks, and cash-based extortion.
Key Provisions of the Bill
The Lagos State Harmonised Taxes and Levies (Approved List for Collection) Bill 2025 aligns with the Federal Government's fiscal reforms and the Renewed Hope Agenda. It consolidates over 60 different levies into a streamlined list of nine primary tax categories. Under the proposed law, anyone caught collecting unauthorized taxes or mounting roadblocks for levies faces a fine of up to N5 million and three years imprisonment.
Electronic Payment System
Addressing the audience on behalf of Speaker Mudashiru Obasa, Deputy Speaker Mojisola Lasbat Meranda emphasized that the bill mandates a fully electronic payment structure. "By eliminating cash transactions, the state is reinforcing transparency and protecting businesses from exploitation and harassment by unauthorized groups," she noted.
Dismantling Hurdles
Femi Saheed, Chairman of the House Committee on Finance, stressed that the legislation is designed to dismantle the long-standing hurdles of multiple taxation, illegal collections, and arbitrary ticketing that have plagued businesses and residents. Saheed noted that while taxes fund infrastructure, healthcare, and security, the current system creates unnecessary burdens that stifle investor confidence. "It is not merely about revenue generation, but about creating order and ensuring businesses operate within a predictable environment," he said.
Inclusive Process
Saheed assured participants that the legislative process remains open and inclusive. The committee is eager to identify hidden taxes not captured in the draft to ensure the final law is comprehensive. "It is our responsibility to ensure that the final legislation is fair, practical, and implementable," he added. "Every submission and memorandum made today will be carefully considered in the best interest of Lagos State."
Stakeholder Concerns
Despite the optimistic tone, various stakeholders voiced realities of doing business in Lagos. Representatives from the Maritime Truck Drivers and LASCOC lamented daily harassment by tugs and unauthorized agents on local council roads. In response, the deputy speaker assured the public that Clause 9 of the bill specifically addresses illegal collections. "We will cross the T's and dot the I's to ensure a robust law," she said.
