Niger State Governor, Mohammed Umaru Bago, has officially banned the taxation of hawkers and petty traders across the state in a bid to ease financial burdens on small-scale business owners and curb unauthorized levies imposed at the local government level.
The directive was announced through the Governor’s Chief Press Secretary (CPS), Bologi Ibrahim, who emphasized the administration’s commitment to protecting small traders from undue financial exploitation.
“We have observed with dismay how petty traders and hawkers are being subjected to multiple taxes. As a government, we have resolved that henceforth, no trader, no petty trader, should be taxed. Hawkers and petty traders are tax-free in Niger. Therefore, anybody found taxing them will be dealt with decisively for extortion,” Governor Bago declared.
He further instructed all Local Government Council Chairmen and Councillors to immediately desist from imposing levies on petty traders, warning that any violation of this directive would attract serious consequences.
The Governor reiterated that Niger State operates a centralized tax system that explicitly exempts hawkers and petty traders from taxation, condemning the exploitation of small-scale businesses through multiple levies.
The informal sector in Nigeria often faces challenges of multiple and illegal taxation, which hinders the growth of small businesses. Studies have shown that traders are subjected to various levies from different groups, leading to financial strain and reduced profit margins.
Similar measures have been implemented in other states. In October 2022, Anambra State Governor, Chukwuma Soludo, abolished taxes for wheelbarrow pushers, vulcanizers, and other petty hawkers, emphasizing the need to protect the livelihoods of low-income earners. Similarly, Ebonyi State Governor, Francis Nwifuru, directed the state’s Board of Internal Revenue to stop imposing levies and taxes on petty traders.
Governor Bago’s decision aligned with these reforms, aiming to create a more business-friendly environment for small-scale traders in Niger State. The policy is expected to boost economic activities at the grassroots level, providing relief to struggling traders who have long faced financial pressures from multiple levies.
This move reinforces the state government’s commitment to economic empowerment and the protection of vulnerable groups within the business community.
