Drivers Under Siege: Firms move against illegal road taxes, demand clarity from all 36 states

A coalition of private sector players is pushing back against what it describes as widespread extortion and illegal taxation on Nigerian highways, launching a nationwide effort to compel state authorities to clarify lawful road levies.

Benid Industries Limited, in partnership with Sanity Multi-Efforts Limited, has formally written to revenue agencies across all 36 states and the Federal Capital Territory (FCT), demanding transparency on approved taxes, payment channels, and their legal basis.

The initiative, announced by Benid Industries CEO Idoko Bartholomew Chukwuma, is positioned as a response to the 2025–2026 Presidential Tax Reform Policy introduced under Bola Ahmed Tinubu.

Mounting Complaints of Highway Extortion

Chukwuma said commercial drivers across the country continue to face harassment from unauthorized individuals who set up roadblocks to collect illegal fees—practices he argues undermine federal tax laws and divert revenue away from government coffers.

“These activities not only violate existing regulations but also impose significant financial burdens on businesses,” he said, citing losses running into millions of naira monthly due to multiple and often undocumented charges.

The company also referenced the Joint Revenue Board Communiqué of December 2025, which sought to streamline tax collection and eliminate duplications, but which stakeholders say remains weakly enforced.

Nationwide Push for Transparency

The outreach, coordinated through SMEL under the leadership of Dan Olaitan Dada, has drawn support from transport unions, manufacturers, churches, and fleet operators.

According to Chukwuma, the goal is not confrontation but clarity.

“We are simply asking for transparency,” he said. “States should clearly outline lawful levies, approved payment channels, and the legal backing for each charge.”

He added that a clearly defined system would improve compliance, protect drivers from exploitation, and boost internally generated revenue (IGR) for state governments.

Cashless Policy vs Roadside Reality

The move highlights a growing disconnect between Nigeria’s push for a cashless, business-friendly economy and the realities on the ground, where many transactions on highways are still conducted in cash under questionable circumstances.

Industry players argue that without standardized enforcement, the government’s broader tax reform agenda risks being undermined by informal and illegal collections.

Interim Measures for Drivers

Pending official responses from state authorities, Benid Industries has issued directives to its drivers and affiliated operators to avoid confrontations, refuse unauthorized cash payments, and insist on official treasury channels.

Drivers have also been advised to report any extortion attempts to security agencies.

A Test Case for Reform

The coordinated effort is being described by stakeholders as one of the first major private-sector attempts to operationalize the federal government’s tax reform policy at the grassroots level.

For businesses and transport operators, the stakes are high: restoring order to Nigeria’s highways could not only reduce costs but also signal whether ongoing economic reforms can translate into real-world impact.

“This is about promoting law, safety, and sanity on our roads,” Chukwuma said. “It’s a collective step toward building a better Nigeria.”

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