The Lagos State House of Assembly has begun consideration of a new bill aimed at harmonising taxes and eliminating the collection of illegal levies by unions, associations and unauthorised groups operating across the state.
The proposed legislation, titled “A Law to Enact the Lagos State Harmonised Taxes and Levies (Approved List for Collection) Law, to Provide for the Collection of Taxes and Levies by the State and its Local Government Councils and for Related Matters,” was subjected to a public hearing on Friday before the House Committee on Finance.
Lawmakers said the bill is designed to address growing complaints from residents, transport operators, traders and businesses over multiple taxation and the activities of illegal revenue collectors who often impose arbitrary charges on citizens.
If passed into law, the legislation would restrict the collection of taxes and levies strictly to recognised government authorities approved by the state and local government councils.
Under the proposed framework, individuals, unions, associations or groups would no longer be allowed to erect roadblocks or engage in the collection of taxes, levies or compulsory membership dues on roads, in markets or within motor parks across Lagos State.
Stakeholders at the hearing described the move as a major step toward sanitising the state’s revenue system and protecting residents from extortion and harassment by unauthorised collectors.
Members of the House Committee on Finance noted that the proliferation of illegal levies had created uncertainty within the business environment and placed additional financial pressure on transporters, traders and small-scale entrepreneurs.
According to lawmakers, the bill seeks to establish a transparent and unified taxation structure capable of improving accountability while boosting internally generated revenue through lawful channels.
Participants at the hearing argued that many residents and business owners are often forced to pay multiple charges to different groups claiming authority from unions or local bodies, a development they said has contributed to the high cost of transportation and goods within the state.
Some stakeholders also complained about the activities of street revenue collectors who allegedly intimidate commercial drivers and market operators through forceful collection methods.
The proposed law is expected to provide clarity on approved taxes and levies collectible by government agencies and local councils, while criminalising unauthorised collections carried out by private groups or individuals.
Lawmakers maintained that the bill was not intended to deprive unions of legitimate operations but rather to restore order and ensure that revenue collection follows due process and legal procedures.
During the public hearing, representatives of business groups, transport stakeholders and community associations reportedly expressed support for measures aimed at ending illegal taxation, though some participants called for clear implementation guidelines to prevent abuse by enforcement agencies.
Economic analysts believe the bill could significantly improve the ease of doing business in Lagos if effectively implemented, especially for small businesses frequently burdened by overlapping levies and informal payments.
The move also comes amid increasing calls for state governments across Nigeria to reform local revenue systems and eliminate exploitative practices associated with multiple taxation.
Observers say Lagos, being the country’s commercial hub, has long battled complaints relating to unofficial collections in markets, transport corridors and commercial centres where various groups demand payments from traders and drivers.
Supporters of the legislation argue that harmonising taxes would not only reduce conflict between revenue collectors and citizens but also increase public confidence in the state’s tax administration system.
At the close of the hearing, the House Committee on Finance assured stakeholders that all submissions and recommendations would be carefully reviewed before the bill proceeds to the next legislative stage.
The Assembly is expected to continue consultations on the proposed law in the coming weeks as part of efforts to strengthen revenue administration and curb illegal levy collection across Lagos State.
