The Lagos State House of Assembly’s move to harmonise taxes and levies across the state has raised hopes among traders and business owners who have long complained about multiple taxation and illegal collections in markets.

The proposed Lagos State Harmonised Taxes and Levies Bill 2025 seeks to reduce the number of approved levies and end illegal collections by unauthorised persons. The bill also proposes penalties for anyone caught collecting illegal taxes or mounting roadblocks for levies.

Lawmakers said the reform would improve transparency and protect residents from exploitation, especially through the introduction of electronic payment systems.

Findings by The Guardian on markets in Lagos Island showed that several roadside traders and small business owners still make regular payments to different groups and officials to avoid harassment, confiscation of goods or forced fines.

Some traders said the payments are unofficial payments made without receipts or tickets, most times demanded under different names, including “weekend money.”

According to the traders, the problem is not only the amount being collected, but the fear and uncertainty surrounding the process.

A trader identified as Mariam Adeoye said traders operating by the roadside are regularly approached by officials popularly referred to as CBD officials.

According to her, the payments are usually made to prevent their goods from being seized.

“We call them CBD, meaning Central Business District. 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.”

She added that refusing to pay mostly leads to intimidation or confiscation of goods.

“If you refuse to pay them, they sometimes angrily carry your market to their office.

That’s when you will pay higher,” she said.

Another trader, Micheal Udeh, explained that most of the collections target traders displaying goods by the roadside, and not those operating inside shops.

According to him, many traders see the payments as a way of avoiding bigger penalties.

“They don’t collect money from people in shops, they only collect money from people shading their market on the road,” he said.

“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.”

He explained that once goods are taken away, traders are forced to pay official fines before recovering them.

“Because it is only when they carry your market to their office that you will collect ticket and you pay fine which is sometimes N10,000 or N15,000,” he added.

Some traders said the collections have become so regular that they now factor them into daily business expenses.

Oyinkan Quadr, another trader in Lagos Island, said different groups come at different times to demand money.

“My neighbour is even tired. She said she wants to leave here. I don’t know if she is going to another market or she wants to find somewhere else because the money we pay is too much,” she said.

“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.”

The experiences shared by the traders reflect concerns among small business owners in Lagos over the burden of multiple levies and unofficial collections.

Although the Lagos Assembly said the new bill would streamline tax administration and eliminate illegal collections, traders interviewed by The Guardian said enforcement is still a major concern.

Some traders also argued that the collections continue because many of those involved operate openly without fear of punishment.

The traders said they pay smaller amounts on the spot to avoid losing goods or missing sales for the day.

Others said the fear of confiscation forces many traders to comply quietly. According to the traders, the problem is no longer limited to official environmental enforcement or market regulation, but the activities of different groups demanding money without clear explanations.

Under the proposed Lagos State Harmonised Taxes and Levies Bill 2025, the state government said only approved taxes and levies would be recognised, while illegal collections and unauthorised revenue activities would attract sanctions.

The bill proposes a fine of up to N5 million or a three-year jail term for anyone found collecting illegal levies or mounting unauthorised roadblocks for revenue collection.

During the public hearing on the bill, lawmakers said the reform became necessary because of persistent complaints from businesses and residents over multiple taxation and arbitrary collections.

The Chairman of the House Committee on Finance, Femi Saheed, said the legislation was designed to address illegal collections, arbitrary ticketing and the burden placed on businesses operating in the state.

According to him, the aim is to create a more predictable business environment and improve transparency in tax administration.

The Deputy Speaker of the House, Mojisola Meranda, also said the bill would strengthen electronic payment systems and reduce cash transactions linked to illegal collections.

Despite those assurances, traders interviewed by The Guardian expressed doubts over whether the proposed reforms would make any changes in the dynamics of taxation in the market.

Oyinkan Quadr said traders are forced to pay different groups repeatedly, sometimes several times in one day.

According to her, different CBD officials can come to collect money from traders up to three times daily.

She also questioned whether the money collected actually goes to the government.

“I am not even sure if they are making money for themselves or the government,” she said.

The experiences shared by the traders reflect concerns among small business owners in Lagos over the burden of multiple levies and unofficial collections.

In commercial areas such as Lagos Island, where thousands of traders operate daily, many business owners said the pressure of repeated collections adds to already rising operating costs.

Several traders said they now increase prices of goods slightly to recover part of the money spent on unofficial payments.

While the Lagos Assembly continues consultations on the proposed bill, traders are waiting to see whether the reforms will bring practical changes to their daily experiences.

Efforts to get response from the Lagos state ministry of commerce were unsuccessful, as official contacted promised to get back to The Guardian after calls and messages, but had yet to do so as at press time. (The Guardian)