BBC Pidgin of Monday, 17 July 2023

Source: BBC

Nigeria so-called tax collectors wey dey operate like mafians

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One ogbonge tax collector wey dey collect money for rich families, wey pipo dey call Captain Nwokuha dey hard im face as e dey waka wit di stick wey im dey use take dey control busy area for southern Nigerian city of Port Harcourt.

Di 34-year-old work na to dey collect "tax" from 18-seater bus drivers wey dey operate for di city.

Oga Nwokuha work no be new tin for dat area, dem don dey pay dis money or give pesin drink as respect for good tidings wey dem bin dey do tey-tey.

Pipo don dey tok say e don dey turn wayo.

Some families wey say dem dey act as caretaker for local communities dey ask money from business, taxi drivers or market pipo wey dey for dia area.

Oga Nwokuha tok say e dey collect 5,000 - 7,000 naira (£5-7; $6.50-9) evri day as tax.

Di papa of two pikin, say e dey keep some of di money for im sef, while e dey give five strong families for di area di remaining money - dem dey pocket di money as dia own.

Nigeria state and local goment dey use pipo like oga Nwokuha as third-party agents to collect tax.

“Dis agents dey use private accounts to deduct dia own share bifor dem remit to goment”, Michael Ango tok, a former government tax official wey dey work for one private company, Andersen Tax.

"Dia method dey create impression say state goment dey use strong hand not law."

Di new administration by President Bola Tinubu, don tok say im go track down agberos, "miscreants and self-imposed tax collectors".

Oga Nwokuha believe say im dey do better tin for di area as tax collectors im dey resolve fight among di drivers.

"If fight bust among di driver na me dey settle am," Nwokuha wey dey operate for Rumuola, Port Harcourt on weekdays from early mor-mor till night tok.

Di 34-year-old man wey dey wear a vest wia dem write "task force" on top as e dey collect 20% passengers' fare from drivers.

"We no dey allow taxi to operate for here," Nwokuha add, as e dey point finger at a "no parking" sign wey dem paint for police colour.

"If dem wan Park dem go pay di community tax," e tell BBC.

Wen drivers no gree give tax collectors community money, dem go seize im side mirror, light, or remove dia moto plate number

If dem fight back, oga Nwokuha go knack im stick for dia head.

Nwokuha dey do wetin local goment staff suppose dey do as local council staff.

Nigeria get 780 local councils but no be all of dem dey functional. Na pipo like Nwokuha dey enforce di authority of dis local councils.

Dem plenti for rich southern states wey dey Nigeria, including highways wia dem dey collect tax on behalf of some state goment.

One lorry driver tell di BBC say e dey pay 80,000 naira (£80; $100) as he dey travel a 540km (335 miles) Lagos and Imo in di eastern part of di country.

"Between Edo and Port Harcourt [alone, a journey of about 280km] we get roadblocks,” e tok.

Anoda logistics operator tok say: "Dem dey collect plenti tax, we dey call one radio tax, we get tax for loading, anoda for parking, one for unloading."

Di logistics operator tok say bribes wey dem dey give police for road as drivers dey travel no dey part of di money.

Clement Akanibo, wey dey Nigeria Chartered Institute of Taxation, describe am as "sometin wey relate to collecting tax at gunpoint".

"E make am hard to do business and increases di final cost by as much as 15%," e tok.

E neva clear how president Tinubu go end dis, but im go need di support of state and local goment as dis tax dey dia control no be federal goment dey control di tax.

As dis money dey go strong families, politicians and plenti pipo like Nwokuha pocket.

Oga Tinubu goment say e want to repair di taxing system to boost revenue so dem go fit increase di money wey dem go spend on services like health and education, as well as pay di huge loan wey Nigeria dey owe.

Di President don det target of increasing di tax-to-GDP ratio to 18% within di next three years.

Official Nigerian data show di ratio dey for 11% in 2021, lower dan wetin di World Bank report for Kenya (13%) and South Africa (26%).

For now, oga Tinubu goment dey focus on di taxes e suppose dey collect - including Value-Added Tax (VAT).

Di federal goment no dey use use tax collectors, na businesses dey pay directly totem.

“For wetin appear to be attempt to end tax evasion, dem wan digitise VAT payments, starting wit di 40 million-strong association of market traders.

Di one no go easy as most of dem no dey keep financial records and dem neva pay VAT bifor, so dem fit resist di move sake of di current economic hardship.

But if di plan work, oga Tinubu goment fit beg state and local goments to drop di usage of tax collectors