The Chartered Institute of Taxation of Nigeria (CITN) has thrown its weight behind the Nigeria Governors’ Forum (NGF) over the decision to harmonise transportation levies on agricultural produce across the country. The move, CITN said, is critical to fixing Nigeria’s strained food supply chain, reducing inflationary pressures, and enhancing public confidence in the nation’s fiscal system.
The NGF’s decision was made public through a communiqué signed by the Chairman of the Forum and Kwara State Governor, AbdulRahman AbdulRazaq, and read by Lagos State Governor, Babajide Sanwo-Olu, following the governors’ recent meeting in Abuja. According to the communiqué, the proliferation of checkpoints, illegal taxation, and poor road infrastructure have significantly contributed to high food prices and supply chain bottlenecks nationwide.
Reacting to the governors’ position, CITN President and Chairman of Council, Innocent Ohagwa, described the harmonisation effort as “a step in the right direction.” He said it reflects a deep understanding of how fiscal policy, tax administration, and logistics can collectively influence national economic outcomes.
“This resolution, which follows a detailed briefing by the National Security Adviser and key ministers on the implications of checkpoint proliferation and unregulated taxation, is vital to improving Nigeria’s food supply chain and tackling food inflation, which reached 21.14% in May 2025,” Ohagwa stated.
The CITN noted that multiple, often illegal levies imposed by state and local authorities on agricultural transportation have long disrupted supply flows, increased food costs, and hurt low-income Nigerians most severely.
To ensure the success of the NGF’s initiative, Ohagwa urged state governors to hold local government chairmen and state internal revenue service leaders accountable for the proper enforcement of the harmonised levy system.
He also called on the Executive Secretary of the Joint Tax Board to work closely with the Inspector General of Police to dismantle unauthorized checkpoints and ensure smooth food logistics across Nigeria’s road networks.
“Governors should also ensure compliance with statutory allocations of internally generated revenue (IGR) to local government councils. This will reduce funding pressures at the local level and discourage the temptation to impose unlawful levies on food transportation,” Ohagwa advised.
Ohagwa reiterated CITN’s long-standing advocacy against multiple taxation, arbitrary levies, and unregulated collection practices. He said such actions increase the cost of doing business, discourage agricultural investments, erode taxpayer trust, and lead to poor revenue performance at all levels of government.
As the statutory body empowered to regulate tax practice in Nigeria, CITN emphasized the need for people-centred reforms that improve ease of doing business, support enterprise growth, and uplift the living standards of Nigerians.
“We urge all tiers of government to stay committed to reforms that reduce compliance burdens, boost productivity in the agricultural sector, and ensure transparent and accountable taxation systems,” Ohagwa said.
Policy experts say harmonising agricultural levies could help cushion the economic shocks currently facing Nigeria. With food inflation reaching its highest in over a year and insecurity threatening farm production and logistics, experts warn that failure to address systemic inefficiencies in food transportation could worsen the already dire food crisis.
The NGF’s harmonisation strategy, backed by the CITN, is seen as a potential game-changer. If implemented effectively across all 36 states, it could reduce cost-push inflation, improve food security, and boost the confidence of private investors and agricultural producers.
CITN concluded its position by calling for a coordinated national framework to monitor and report on the implementation of the harmonised levy policy. The Institute also encouraged the Federal Government to consider integrating the policy into its broader national economic recovery strategy to ensure inclusive growth.
As Nigeria grapples with complex economic headwinds, including rising food prices, insecurity, and declining disposable income, stakeholders agree that tackling the root causes of inefficiencies in the agricultural value chain is non-negotiable.
The endorsement by CITN may serve as a catalyst for faster implementation of the NGF’s harmonised levy system—potentially delivering much-needed relief to farmers, traders, and millions of food-insecure Nigerians.