Traders and business owners in Lagos have expressed growing frustration over persistent illegal levies and multiple taxation, even as the Lagos State House of Assembly advances a harmonised tax reform bill. The proposed Lagos State Harmonised Taxes and Levies Bill 2025 aims to reduce the number of approved levies and eliminate unauthorised collections by individuals or groups.
Traders Share Experiences of Illegal Collections
Investigations by The Guardian in markets across Lagos Island reveal that many roadside traders and small business owners continue to make regular payments to various groups and officials to avoid harassment, confiscation of goods, or forced fines. These payments, often made without receipts or tickets, are demanded under different names, including 'weekend money.'
Mariam Adeoye, a trader, explained that officials known as CBD (Central Business District) regularly approach roadside traders. 'We pay them N200 so that they will not carry our market,' she said. 'These money, they don't give us ticket for it. Sometimes, they even just come and collect money for weekend. They collect N200 from us, sometimes N500.' Refusing to pay often leads to intimidation or seizure of goods, forcing traders to pay higher amounts later.
Another trader, Micheal Udeh, noted that collections target those displaying goods by the roadside, not shop owners. 'The money you are paying is for them not to carry your market. But if they get to carry your market, and you have to bribe them, you give them N3,000, sometimes N5,000, just for them not to take your market to their office.' Once goods are confiscated, traders must pay official fines, sometimes N10,000 or N15,000, to recover them.
Impact on Business Operations
Oyinkan Quadr, another trader, described the burden of multiple payments: 'Some guys come to collect money from us too. They claim it's for weekend. They collect N1,000 every weekend. They come for their own in the morning, while CBD collects theirs in the evening. We are always paying.' She added that traders often pay different groups up to three times daily, questioning whether the money reaches the government.
Many traders have started factoring these illegal levies into their daily expenses, leading to slight price increases on goods. The constant fear of confiscation and harassment forces many to comply quietly, despite the financial strain.
Government Assurances and Traders' Doubts
The Chairman of the House Committee on Finance, Femi Saheed, stated that the legislation targets illegal collections, arbitrary ticketing, and the burden on businesses. Deputy Speaker Mojisola Meranda emphasised that the bill would strengthen electronic payment systems and reduce cash transactions linked to illegal collections.
However, traders remain skeptical about enforcement. Many believe that those involved in illegal collections operate openly without fear of punishment. Efforts to get a response from the Lagos State Ministry of Commerce were unsuccessful, as officials promised to comment but did not respond by press time.
The experiences of these traders highlight the ongoing challenges small business owners face in Lagos, where multiple levies and unofficial collections continue to undermine economic activities, even as legislative reforms are underway.
