The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has clarified that the Federal Government is not hiring ‘area boys’ to collect taxes.
In an interview with Channels Television on January 17, Oyedele suggested that the government could provide training and decent salaries to area boys in order to discourage their involvement in illegal activities.
However, his statement was misinterpreted, leading to public criticism. Oyedele took to his social media account on Saturday to explain that his comment was taken out of context.
He emphasized that individuals cannot be recruited for a job they are already doing, whether legally or illegally engaged.
“We have over 40 taxes and levies which States and Local Governments are authorised by law to collect across Nigeria including road taxes on trucks, buses and bicycles, wheelbarrow, kiosks and shops levies,” he said.
“In many cases, area boys are engaged to collect these taxes which they often do through crude, unorthodox means and harassment.
“Painfully, these taxes yield very little revenue to the government despite the huge burden they place on small businesses, artisans and transporters.”
Oyedele clarified in the interview that his concern was not hiring more tax collectors but rather reaching an understanding with people who are already engaged and have an informal stake in the system.
“We propose to eliminate many of these taxes and harmonise a few of them that may be appropriate and devise a civil means of collection using mobile phones,” he said.
Oyedele claimed that the topic he discussed had been sensationalized and misrepresented.
According to the tax expert, he was discussing how to “get the buy-in of those who currently collect these taxes (and benefit from doing so beyond what they are being paid officially).”
“I did not mention any word like recruit or employ. My thought on it beyond the legal aspect was to consider the social dimension and find a practical solution that has a high chance of success,” he said.
“The idea is that the government could train the collectors to behave in a civilised manner and pay them decently so that it is comparable to what they currently make.
“Their new role will be to drive and monitor compliance. The payers will pay less and be treated with dignity. Government will earn more, and society will benefit – a win-win outcome for everyone.”The Oyedele-led presidential committee unveiled a fast win report with twenty recommendations in October 2023.
As soon as he received the document, President Bola Tinubu ordered that the recommendations be put into action.
