FG Set to Suspend Collection of Levies From Shops, Okada Riders for 6 Months

The Federal Government (FG) plans to suspend the nationwide collection of levies from various sectors, including shops and Okada riders, for six months as a medium to bring relief to those struggling with the high cost of living.

President Bola Tinubu, exercising his powers under section 5 of the Nigerian Constitution, is considering this suspension to help reduce inflation and stabilize prices. The proposed suspension is part of a draft executive order titled “Inflation Reduction and Price Stability (Fiscal Policy Measures, etc.) Order 2024,” dated May 1.

Relief across multiple sectors

The suspension will affect several sectors, including Okada riders, transporters of goods, fuel transporters, wheelbarrow and cart pushers, shop owners, and market traders. 

These groups will benefit from a temporary halt in the collection of various FG levies, which include road haulage tax, business premises registration fees, and market taxes.

The executive order emphasizes the need to reduce inflation and lower the prices of essential goods across the country. By suspending these FG levies, the government hopes to ease the financial strain on small business owners and transport workers, ultimately making goods and services more affordable for Nigerians.

The draft order also calls on states and local governments to support the implementation of this tax suspension. This cooperation is crucial to ensure the effective execution of the relief measures and to maximize their positive impact on the economy.