In a bold move underscoring a commitment to transparency and fiscal accountability, members of the Nigerian House of Representatives have launched an exclusive investigation into the operations surrounding the issuance of driver’s licenses—a critical revenue-generating mechanism that appears to have been marred by financial irregularities over the past three years.
The investigative probe was spurred by mounting concerns voiced during a plenary session on Wednesday, following the introduction of a motion sponsored by Hon. Afam Victor Ogene (LP, Anambra). The lawmaker’s concerns centered on the tripartite revenue arrangement involving the Federal Road Safety Corps (FRSC), State Boards of Internal Revenue (BIR), and the Vehicle Inspection Office (VIO). According to Ogene, there is significant opacity in how funds have been managed, with allegations that the established protocols for driver’s license issuance are being manipulated for potential revenue diversion.
Typically, the driver’s license process in Nigeria begins with obtaining a learner’s permit issued by the Motor Vehicle Administration Agency (MVAA) within each state for a statutory fee. Once the learner’s permit is acquired, applicants proceed to full licensing through a series of regulated steps. However, the probe suggests that the FRSC’s designated VIP Centres—originally intended for renewal purposes—have reportedly been used to issue new licenses without the crucial prerequisite of a learner’s permit. This deviation from standard practices raises serious questions about procedural integrity and accountability.
Central to the investigation is the allegation that the FRSC’s Information Processing Centre (IPC) is being exploited to both warehouse and manipulate vital driver’s license data. This manipulation, according to insider reports and lawmaker testimonies, has resulted in considerable financial discrepancies. Revenue that should be channeled directly to State Boards of Internal Revenue and the Vehicle Inspection Office appears to be partly diverted or mismanaged under the current system.
“There are multiple revenue lines in this process—from driving school certifications to driving history applications used for foreign travel processing—and it appears the IPC is controlling receiving accounts in a manner that shortchanges other revenue collectors,” stated Ogene during the session. The lawmaker was particularly critical of the lack of transparency, as funds amounting to hundreds of billions of naira annually are reportedly left unaccounted for.
Another significant aspect of the investigation pertains to the revised rates announced by the Joint Tax Board (JTB) in November 2024. The new fee structure introduced charges of ₦21,000 and ₦15,000 for five- and three-year motor vehicle licenses respectively, with motorcycle and tricycle licenses priced at ₦11,000 and ₦7,000. These adjustments have further complicated the revenue-sharing formula among the agencies involved, prompting additional scrutiny into how such funds are allocated and whether they are reflective of the actual costs of service delivery.
Financial experts have weighed in on these concerns, noting that sudden changes in fee structures—if not well explained or monitored—could be symptomatic of deeper systemic issues that may lead to revenue leakage. Critics argue that without a robust mechanism to track and audit these transactions, the public remains vulnerable to mismanagement and corruption.
Beyond the fiscal implications, the investigation has also highlighted severe delays in the issuance of driver’s licenses. Applicants have reported waiting anywhere from two to three years post-biometric capturing to receive their licenses—a delay that not only undermines the efficacy of the licensing system but also compromises road safety and public confidence in regulatory institutions.
Sources indicate that these delays may be linked to unresolved debts that the FRSC allegedly owes to technical consultants, including Galaxy Backbone Ltd, tasked with managing biometric and data systems. The financial strain caused by these unpaid debts is believed to be a contributing factor to the inefficient processing times that have plagued the system for years.
The investigation, now formally underway, is expected to conclude within four weeks. During this period, representatives from FRSC, State BIRs, and the VIO, along with independent financial auditors, are expected to provide detailed accounts of their operations, revenue collection methods, and fund allocation procedures. The ultimate goal of the probe is not only to identify and rectify any discrepancies but also to propose necessary reforms that can prevent similar lapses in governance in the future.
Experts underscore the need for a comprehensive review of the driver’s license issuance system—a review that should incorporate modern auditing techniques, the adoption of advanced technology for data management, and a stricter adherence to regulatory protocols. Such measures, they assert, will fortify the integrity of the process, ensure that revenue is appropriately distributed, and ultimately restore public trust in the government’s regulatory frameworks.
While the current probe focuses narrowly on the financial mechanisms underlying driver’s license issuance, the implications of this investigation could reverberate across other sectors of government revenue management. The inquiry comes at a time when calls for enhanced transparency and accountability are being echoed throughout various levels of government, reflecting a broader demand for systemic reform in Nigeria’s public sector.
In a statement issued after the session, representatives emphasized that this investigation is part of a larger effort to “root out corruption and ensure that every naira meant for public service is accounted for and effectively used for the betterment of all citizens.” The probe, they affirmed, will set a precedent for future inquiries into other areas where financial mismanagement may be occurring unnoticed.
As the investigation unfolds, all eyes will be on the FRSC and its administrative practices. With potential revenues in the hundreds of billions of naira hanging in the balance, the outcome of this probe could significantly reshape operational protocols not only within the driver’s license issuance process but also across other government revenue systems. The House of Representatives’ firm stance on enforcing transparency sends a clear message: in the battle against corruption and inefficiency, no institution is above scrutiny.