In response to recent reports suggesting the federal government’s intention to utilize ‘area boys’ (informal street youth) for tax collection, Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, has issued a swift clarification.
Oyedele, a prominent economist and tax expert, categorically denied the claims via a post on X Saturday. He emphasized that the government has no intention of employing informal entities for such a critical task, stating, “We have over 40 taxes and levies which States and Local Governments are authorised by law to collect across Nigeria including road taxes on trucks, buses and bicycles, wheelbarrow, kiosks and shops levies,” he said.
“In many cases, area boys are engaged to collect these taxes which they often do through crude, unorthodox means and harassment.
“Painfully, these taxes yield very little revenue to the government despite the huge burden they place on small businesses, artisans and transporters.”
Oyedele said the issue he raised in the interview was not about employing more tax collectors but about finding common ground with those already involved, who have an unofficial stake in the system.
“We propose to eliminate many of these taxes and harmonise a few of them that may be appropriate and devise a civil means of collection using mobile phones,” he said.
Oyedele said the issue he addressed was sensationalised and taken out of context.
According to the tax expert, he was talking about how to “get the buy-in of those who currently collect these taxes (and obviously benefit from doing so beyond whatever they are being paid officially)”.
“I did not mention any word like recruit or employ,” he said.
“My thought on it beyond the legal aspect was to consider the social dimension and find a practical solution that has a high chance of success.
“The idea being that government could train the collectors to behave in a civilised manner and pay them decently so that it is comparable to what they currently make.”
The news of ‘area boys’ being considered for tax collection sparked concerns among many citizens. Some expressed apprehension about entrusting such a sensitive responsibility to individuals outside of established tax authorities, fearing potential corruption and inefficiencies. Others raised ethical concerns regarding the potential exploitation and marginalization of ‘area boys’ within the system.
Oyedele’s clarification aims to address these concerns and reassure the public about the government’s commitment to responsible and transparent tax administration. He emphasized that the committee’s focus remains on building a robust and inclusive tax system that benefits all Nigerians.
