Lagos Moves to Ban Illegal Roadblock Tax Collection, Offenders Risk ₦2m Fine, 3-Year Jail Term 

The Lagos State Government has unveiled plans to streamline taxation and eliminate illegal levies through a new bill designed to harmonise taxes, enforce electronic payments, and impose stricter penalties on unauthorized collections.

The proposal was disclosed during a public hearing at the Lagos State House of Assembly on a bill titled: “A Law to Enact the Lagos State Harmonised Taxes and Levies, to Provide for the Collection of Taxes by the State and Its Local Government Councils, and for Related Matters.”

Speaker of the House, Chief Mudashiru Obasa represented by Deputy Speaker Mojisola Meranda, described the hearing as a platform for inclusive stakeholder engagement, stressing that effective lawmaking must reflect public input.

He noted that the bill is aimed at eliminating duplication in tax collection, improving coordination across agencies, and strengthening public service delivery.

A key feature of the proposed law is the mandatory adoption of electronic payment systems, which lawmakers say will reduce cash-based transactions, curb leakages, and enhance transparency in revenue collection.
Presenting the bill, Majority Leader Noheem Adams said the current system has been plagued by multiple illegal charges affecting residents and businesses.

He added that the legislation also aligns with recent amendments to Nigeria’s tax framework.

The draft bill further prohibits the use of roadblocks for tax and levy collection and introduces strong taxpayer protection provisions.

It also prescribes stiff penalties for offenders, including a fine of ₦2 million or up to three years imprisonment for unauthorized tax collection.

Chairman of the House Committee on Finance, Femi Saheed, said the reform would improve governance efficiency and ease the burden of multiple taxation on businesses operating in the state.