Tax Group Urges FCT to Ease Burden on Informal Sector

Samuel Mobolaji

The Tax Justice and Governance Platform (TJ&GP) has called on the Federal Capital Territory Administration (FCTA) to reduce the tax burden on the informal sector, highlighting the pressing need for a fair and inclusive tax system. The appeal was made during a presentation titled “On-boarding of the Tax Justice and Governance Platform – FCT,” led by Chinedu Bassey.

Bassey explained that the platform comprises individuals and organisations committed to promoting a just and progressive tax regime in Nigeria. Its governance structure includes groups such as the Civil Society Legislative Advocacy Centre (CISLAC), ActionAid Nigeria, International Budget Partnership (IBP), Christian Aid, Oxfam, Centre for Democracy and Development (CDD), and the Nigeria Labour Congress (NLC).

According to him, the TJ&GP is concerned with a range of issues, including the management of the tax expenditure regime, absence of a clear framework for informal sector taxation, lack of inclusivity in tax policy-making, rising revenue losses through illicit financial flows, multiplicity of taxes, gender implications of tax policy, and the use of unauthorised officials in tax collection. Other concerns include inconsistencies in digital taxation and widespread tax evasion by multinationals and wealthy individuals. The overall goal, Bassey said, is to ensure socio-economic justice through a fair and equitable tax system.

Speaking at the same event, Chika Oko, Senior Programme Officer at the International Budget Partnership, stressed the importance of tax as a sustainable tool for development. She noted that tax revenues provide vital services such as healthcare, education, agriculture, water, security, and infrastructure, which benefit the most vulnerable in society. Oko said the platform advocates for tax transparency, accountability, and equity, with a focus on generating adequate revenue without overburdening low-income earners.

Oko highlighted the complexity of taxing the informal sector, noting that many small and micro businesses are subjected to multiple levies by various state and non-state actors. She expressed concern that some large businesses exploit the lack of regulation in the informal sector to evade taxes, while genuine small traders who are simply trying to make a living are overtaxed.

She called on government authorities to address tax evasion by big businesses to lessen the burden on the informal sector and ensure a more just taxation system. Oko reaffirmed the platform’s commitment to research, sensitisation, advocacy, and close collaboration with tax authorities to strengthen Nigeria’s tax system both in the FCT and across the country.