FCTA suspends drivers, riders permit levy

The Federal Capital Territory Administration (FCTA) has officially suspended the enforcement of its newly introduced Drivers and Riders Permit Levy, following strong opposition from dispatch riders operating across the Federal Capital Territory (FCT).

FCTA

The decision, announced by the Mandate Secretary of the Transportation Secretariat, Dr. Chinedum Elechi, comes after a series of discussions with riders’ representatives and reflects the government’s willingness to engage stakeholders before implementing the levy.

In a formal letter addressed to First Capital Cargo Ltd, the company responsible for collecting the levy, Dr. Elechi instructed an immediate suspension of enforcement until further consultations could take place.

The Mandate Secretary explained that the directive was necessary after riders expressed concerns about what they described as multiple taxation across various jurisdictions within the FCT.

“Following the meeting with the leaders of the Association of Dispatch Riders in the FCT, and considering concerns of multiple taxation raised during the discussion, you are hereby directed to suspend the enforcement of collection of the Drivers and Riders Permit Levy, pending further engagement with all relevant stakeholders,” the letter read.

The move to halt the permit levy enforcement followed a high-profile protest on February 19, 2026, when thousands of dispatch riders marched to the FCTA Secretariat in Abuja.

They demanded urgent intervention from the FCT Minister, Nyesom Wike, citing financial strain due to overlapping payments to multiple authorities.

Riders argued that in addition to paying the newly introduced N25,000 permit levy, they were already subject to an annual levy of N13,000 imposed by the Abuja Municipal Area Council, Bwari, and Gwagwalada Area Councils.

Beyond these payments, riders stated that they also pay a N300 market ticket fee each time they enter a market within Abuja.

This combination of charges, according to them, constitutes multiple taxation, which they said is unsustainable and threatens the livelihood of dispatch riders across the capital territory.

The protest drew attention not only to the financial burden but also to the need for a more coordinated approach to revenue collection in the FCT.

Dr. Elechi’s directive underscores the FCTA’s recognition of these challenges.

The suspension of the permit levy gives authorities time to consult with the riders, assess the concerns raised, and work toward a resolution that balances revenue generation with fairness for transport operators.

Officials have indicated that no further enforcement action will be taken until a mutually acceptable framework is developed in collaboration with relevant stakeholders.

Stakeholders in the transportation sector have welcomed the suspension.

Many industry observers believe that it signals a more inclusive approach to policy implementation, ensuring that the voices of affected workers are heard before levies are fully enforced.

“It is encouraging that the FCTA is willing to suspend the levy and listen to our concerns. This gives us hope that the authorities are committed to fairness and dialogue,” said one representative of the dispatch riders.

The situation also highlights broader concerns about multiple taxation within Abuja.

While local councils impose levies on riders operating in their areas, the introduction of a separate permit levy by the Transportation Secretariat has raised questions about the cumulative financial burden on riders.

Analysts have called for a review of how transport levies are structured to avoid duplication and undue hardship for operators who play a vital role in urban mobility.

The FCTA’s decision to suspend the permit levy demonstrates an effort to balance regulatory oversight with economic realities.

By engaging stakeholders, the administration aims to design a system that is transparent, equitable, and easier to administer.

Officials have confirmed that the suspension is temporary, pending discussions with the Association of Dispatch Riders and other relevant bodies to address concerns about multiple taxation and clarify the objectives of the permit levy.

As the dialogue continues, dispatch riders and other operators in the transport sector remain hopeful that a fair resolution will be reached.

The suspension period provides a window for negotiation and policy refinement, ensuring that the permit levy, when finally implemented, does not become a source of financial hardship for transport workers.

The FCTA has reiterated its commitment to maintaining open communication with all stakeholders to ensure compliance, transparency, and mutual understanding in the administration of transport levies.

Ireport247news

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