In a bold move to reform tax collection in Nigeria’s haulage sector, the federal government, through the Value Added Tax (VAT) Direct Initiative (VDI), plans to recruit and train highway touts and hoodlums as marshals for tax enforcement.
This initiative aims to streamline haulage tax collection and curb illegal tolls being taken by these groups on major routes across the country.
The Relationship Manager for the Road Haulage VAT Direct Initiative and Single Sticker System, Mr. Festus Ukwu confirmed this development in an exclusive interview with Shipping Position Daily, explaining that the initiative seeks to bring order to a sector plagued by extortion and illegal ticketing activities.
Shipping Position Daily recalls that the Lagos State Taskforce in the last few weeks has arrested more than 120 individuals involved in illegal ticketing and extortion activities targeting trucks and commercial vehicles entering the state.
The Chairman of the Lagos State Taskforce, Mr Adetayo Akerele noted that these arrests were made in key areas of the state, including Isolo, Mushin, Apapa, Mile 2, and Lagos-Badagry Expressway. He also informed that the arrested suspects will be charged to court immediately.
However, speaking with our correspondent last week, Mr Ukwu explained that previously, haulage drivers faced harassment from touts who demanded tolls at various illegal checkpoints while transporting goods across states. These tolls, which often amount to significant sums, were meant to go to government coffers, but were instead being pocketed by these unauthorized collectors.
To address this issue, Ukwu informed that the government has introduced the VDI and a single sticker system, which allows haulage operators to make a one-time payment and receive a receipt and sticker. With this, according to him, they can move their cargo without further payments or harassment until they reach their destination across the country.
The VDI Relationship Manager stressed that the initiative is also part of a broader government effort to reduce the number of taxes and levies imposed on haulage operators. According to Ukwu, the number of taxes has been reduced from over 200 to just 10, making it easier for operators to comply and ensuring that the government captures more revenue that were previously lost to illegal collections.
To further enforce this initiative, Ukwu informed that many of the former touts will be recruited as marshals and tasked with monitoring compliance and working alongside Police and VDI officials. He noted that they will receive training and be paid for their services, effectively bringing them off the roads and providing them with legitimate employment.
Addressing concerns about lingering road harassment in Lagos, particularly on the Tin Can–Mile 2–Agbara axis, which has been notorious for such activities, Ukwu acknowledged that while enforcement is not yet fully effective, efforts are underway to remove the remaining touts, with many already arrested by the Lagos State Task Force.
In his words: “The government wants to harmonize tax collection, so they can get enough revenue from haulage operations. Many of these touts collect money from trucks drivers who are being paid by the freight forwarders or importers, but they don’t pay tax to the government. The government has reduced the number of taxes. Before now, we had over 200 taxes that were being charged by the federal government. But they have now been harmonized and brought down to 10.
“So, the VDI and the Single Sticker System make it imperative that when you have that sticker and you load from Lagos going to anywhere in the country, immediately you pay and you have that sticker here nobody stops you till you get to your destination in the country.
“Most of these touts have been recruited and trained as marshals that will work with the police and the VDI workers. So, they will be paid. They are bringing them out of the road and giving them employment. So, there will be nothing like those touts again trying to stand on the road”
On his part, the Secretary General of the Association of Maritime Truck Owners (AMATO), Sani Bala Muhammed lauded the introduction of the unified sticker system, highlighting its potential to significantly reduce the financial burden on truck drivers and owners.
Muhammed explained that under the old system, truck drivers were forced to pay tolls or purchase separate stickers as they moved goods across state borders, particularly when transporting cargo from southern states to northern regions. These payments according to him often led to increased operational costs, which ultimately impacted the overall profitability of the trucking business.
The AMATO Scribe emphasized that the new system is designed to close these loopholes, allowing truckers to reinvest their earnings into maintaining their vehicles, supporting their families, and growing their businesses.
However, when asked about employment opportunities for former road touts and hoodlums who had previously relied on illegal toll collections, Muhammed pointed out that it is not the responsibility of the government to directly provide employment for every citizen, but rather to create an environment conducive to personal and professional development.
Muhammed maintained that while the Lagos state government has initiated several skill acquisition programs and opportunities for self-employment, many of these individuals are unwilling to participate.
While stressing the numerous opportunities at the local and state government levels, where citizens can seek training in various fields, Muhammed urged those who are unemployed to approach their local councilors, legislative representatives, or state governments to explore these opportunities available.
