CITN Confident Harmonising Levies on Food Transport Will Boost Supply

Omolabake Fasogbon

The Chartered Institute of Taxation of Nigeria (CITN) has expressed optimism about the resolution by Nigeria Governors’ Forum (NGF) to harmonize levies on transporting agricultural produce, stating it will enhance food supply and affordability. 

The NGF’s resolve followed briefings by the National Security Adviser (NSA), Nuhu Ribadu and concerned ministers on the negative impacts of checkpoint proliferation and unregulated taxation.

CITN described the decision as a step in right direction, pointing to its potential to ease pressure on food prices and restore order to Nigeria’s agricultural value chain. 

President/Chairman of Council of the Institute, Innocent Ohagwa referring to spiraling food inflation in the country, reaching 21.14% in May, worried  that this trend is not unconnected to illegal levies and multiple taxes on transporting agricultural produce across states.

“Imposition of illegal levies and multiple taxes on transporting agriculture produce all contribute to disrupt supply chains and worsen food affordability across the country. 

“This resolution, if effectively and uniformly implemented, will not only improve food availability but also reduce cost-push inflation and enhance public trust. It will also support the livelihoods of millions of Nigerians and create a more efficient economic environment,” he said. 

Ohagwa pleaded with state governors to diligently monitor local government chairmen and state internal revenue service chairmen to ensure full compliance.  It also implored Executive Secretary of the Joint Tax Board to liaise with the Inspector-General of Police for effective enforcement of the directive. 

In addition, the CITN helmsman advised governors to ensure the statutory allocation of the required percentage of states’ internally generated revenue to their local government councils to mitigate funding pressures. 

“As the professional body responsible for regulating tax practice in Nigeria, the institute has consistently advocated against multiplicity of taxes and unregulated collection practices. We firmly believe that this harmonization, coupled with ongoing people-centred reforms, will improve the standard of living, reduce the cost of doing business, and foster inclusive economic growth,” he submitted.