“We’ll Train Them”: Tinubu’s Government Considers Using ‘Area Boys' For Tax Collection

“We’ll Train Them”: Tinubu’s Government Considers Using ‘Area Boys' For Tax Collection

  • The Nigerian government is considering employing areas boys for tax collection
  • The chairman of the presidential committee on fiscal policy and tax reforms said the move is to create jobs
  • He said the area boys would be engaged and paid decent salaries to forsake their old ways

Pascal Oparada has over a decade of experience covering Tech, Energy, Stocks, Investments, and Economy.

The chairman of the presidential committee on fiscal policy and tax reforms, Taiwo Oyedele, says the Nigerian government should begin the implementation of the tax reforms in March 2024.

Oyedele revealed in a recent interview on Channels Television that his team plans to involve all stakeholders in implementing the tax reforms, including using street urchins popularly called ‘Area Boys.’

Taiwo Oyedele, Tax reforms, Area Boys
The Minister of Finance and Coordinating minister for the economy, Wale Edun and Taiwo Oyedele Credit: State House
Source: Getty Images

Tax reform committee makes 20 recommendations

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TheCable reports that in October 2023, Oyedele’s committee presented a quick win report containing 20 recommendations to President Bola Tinubu.

Tinubu directed an immediate enforcement of the recommendations after receiving the document.

According to Oyedele, about three reforms have been completely implemented, and the remaining ones are in different stages of implementation.

He said:

“The biggest instrument to implementing our recommendation is the Emergency Economic Intervention Bill that we came up with, trying to amend about 15 different laws and implement some significant changes that will help with price stability in terms of inflation.”
“It will also help in terms of costs and providing relief to the right people who are most impacted.

The tax guru said the national assembly is delaying the implementation of the reforms, stating that when the bill is passed, Nigerians will see them come out.

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Oyedele says area boys could be trained and paid decently

Per Oyedele, the execution of policies is the most critical, and the committee members are trying to work on the enforcement mechanisms to implement the policy.

He stated that in carrying out the plans successfully, the committee seeks to ensure all enforcement parties are on board, including street urchins.

He said the “area boys” could be trained for tax collection and paid decent salaries to forsake their old ways.

The fiscal policy specialist said all the efforts are to reduce multiple taxation, which he said are a nuisance at the state and local levels.

“Our view is that the local government can collect more than 10 times what they are collecting now by following the recommendations that we’re giving them.”
“We are looking for sources where we can find at least N50 billion, which we can then use to compensate them for suspending the taxes we’re asking them to stop.

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“Maybe we need to train those area boys and touts, give them uniforms, and then they’ll be the ones to ask you to show the evidence on your phone, and then they get paid a decent salary.
“If you give them the skills, some will move on their own from that job to something else.

“Full List:” Tinubu identifies 62 taxes paid by Nigerians

Earlier, Legit.ng reported that President Bola Tinubu's administration is working to prune down taxes in Nigeria from the current 62 to a maximum of nine to create a business-friendly environment.

The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, stated this at the 2023 Annual Conference of the Institute of Chartered Accountants of Nigeria (ICAN) in Abuja on Tuesday, October 10, 2023.

Oyedele, who asked the Nigerian government to remove VAT from diesel, said the step is essential as the current multiple tax system in the country has made tax administration difficult and ineffective.

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Source: Legit.ng

Authors:
Pascal Oparada avatar

Pascal Oparada (Business editor) For over a decade, Pascal Oparada has reported on tech, energy, stocks, investment, and the economy. He has worked in many media organizations such as Daily Independent, TheNiche newspaper, and the Nigerian Xpress. He is a 2018 PwC Media Excellence Award winner. Email:pascal.oparada@corp.legit.ng