FCTA Bows To Pressure, Suspends Controversial Drivers & Riders Levy After Outcry Over Multiple Taxation

The Transportation Secretariat of the Federal Capital Territory Administration (FCTA) has announced the suspension of the enforcement of its Drivers and Riders Permit Levy, pending further consultations with relevant stakeholders.

According to Ireporter Online, the directive was conveyed by the Mandate Secretary of the secretariat, Chinedum Elechi, in a letter addressed to the Managing Director of First Capital Cargo Ltd, the company engaged to oversee the levy’s collection.

The letter, dated February 23 and obtained in Abuja, indicated that the decision followed a meeting between the secretariat and leaders of dispatch riders operating within the Federal Capital Territory. During the meeting, concerns were raised regarding alleged multiple taxation by various authorities.

Elechi stated that in view of the issues highlighted, the firm had been directed to immediately suspend enforcement of the levy pending broader engagement with all affected parties. He emphasized the need for strict compliance with the directive.

The development comes days after hundreds of dispatch riders staged a protest at the FCT Administration Secretariat on February 19, decrying what they described as excessive and overlapping levies. The riders appealed to the FCT Minister, Nyesom Wike, to intervene and halt what they termed extortion.

The protesters maintained that they already pay an annual levy of ₦13,000 to the Abuja Municipal Area Council, as well as to the Bwari and Gwagwalada Area Councils. They argued that the newly introduced ₦25,000 permit levy by the FCTA Transportation Secretariat would significantly increase their financial burden.

In addition, the riders disclosed that they are required to pay ₦300 each time they access markets within Abuja, insisting that the cumulative charges amount to multiple taxation.

Observers note that the suspension of the levy’s enforcement is expected to create room for further dialogue and negotiations aimed at addressing the concerns raised and reaching a mutually acceptable resolution.