FCT Dispatch Riders Protest ‘More Than One Taxation’: A Deep Dive into the Abuja Tax Dispute

Introduction: The Spark of Protest in Abuja

In a significant display of collective frustration, thousands of dispatch riders (commonly known as “okada” riders) in Nigeria’s Federal Capital Territory (FCT), Abuja, took to the streets on February 19, 2026. Their protest targeted the FCT Administration Secretariat, decrying what they termed “more than one taxation” or multiple taxation. This action highlights a chronic tension between informal transport workers and overlapping governmental revenue authorities. The riders, who form the backbone of last-mile logistics in the bustling capital, are not rejecting tax obligations per se but are resisting the cumulative financial burden imposed by several agencies. Their primary demand is for the FCT Minister, Nyesom Wike, to intervene and streamline the system, which they allege has become exploitative and illegal. This article provides a comprehensive, SEO-friendly analysis of the protest, its roots, implications, and potential resolutions.

Key Points: What You Need to Know

• Who: Thousands of commercial dispatch/motorcycle riders operating within the Federal Capital Territory (FCT), Abuja.
• What: A street protest against “multiple taxation” – the payment of separate levies to multiple government bodies for the same activity.
• Where: The protest converged on the FCT Administration Secretariat in Abuja.
• When: The protest occurred on Thursday, February 19, 2026.
• Why: Riders claim they are forced to pay:
  • Annual taxes to three Area Councils: Abuja Municipal Area Council (AMAC), Bwari, and Gwagwalada.
  • A new, higher levy of N25,000 imposed by the FCT Administration.
  • A daily fee of N300 each time they enter the city centre (“the successful”) of Abuja.
• Outcome: The protest was suspended following a meeting between riders’ leaders and officials from the FCT Transportation Secretariat.
• Core Demand: Intervention from FCT Minister Nyesom Wike to abolish the “illegal” additional levies and establish a single, clear payment channel.

Background: The Structure of Taxation in the FCT

To understand the riders’ grievance, one must navigate Nigeria’s unique administrative structure for the capital. The FCT is not a state but a federal territory administered directly by the federal government through the FCT Administration (FCTA). However, it is subdivided into six Area Councils (AMAC, Bwari, Kuje, Kwali, Gwagwalada, and Abaji), which function similarly to local governments. This creates a dual layer of governance.

Historical Tax Compliance by Riders

The dispatch riders’ spokesperson, Mr. Olawale Ilesanmi, acknowledged their historical compliance. For years, riders operating in specific council jurisdictions paid their levies and taxes to the respective Area Council revenue authorities. This system, while perhaps not perfect, was understood and predictable. The taxes served as a operational permit and were seen as a statutory obligation.

The Emergence of a New Revenue Authority

The grievance stems from the recent emergence of a new set of collectors. According to the riders, agents acting “in the name of the FCT Administration” began demanding a separate, significantly higher fee—reportedly N25,000—from motorcycle owners. This demand is presented as an additional requirement, not a replacement for the Area Council taxes. The riders argue this creates a situation where they must pay for the same operational right to three different entities: AMAC, Bwari/Gwagwalada, and now the central FCTA.

The “Per-Entry” Fee Controversy

Compounding the issue is the alleged N300 fee levied every time a rider enters the central business district (referred to as “the successful” or “success”). For riders who make multiple trips into the city centre daily, this fee rapidly becomes a substantial daily cost, on top of their annual levies. The riders illustrated this by stating that 10 entries would cost N3,000 in a single day, a figure they described as burdensome.

Analysis: The Legal and Economic Implications of Multiple Taxation

The protest raises critical questions about fiscal federalism, regulatory clarity, and the economic sustainability of informal transport workers.

Is Multiple Taxation Illegal in Nigeria?

Yes, under Nigerian law, the principle of prohibiting multiple taxation is well-established. The Constitution of the Federal Republic of Nigeria (1999, as amended) vests the power to tax on the three tiers of government (Federal, State, Local) but forbids one tier from levying a tax on a subject already covered by another tier where it leads to double taxation. The Federal Inland Revenue Service (FIRS) Act and various state/local tax laws aim to prevent this. The riders’ claim that the new FCT Administration levy is “illegal” hinges on this principle: if they have already paid a similar operational tax to an Area Council (a local government tier), the FCTA (a federal territory authority) may lack the legal grounds to impose an identical levy without a clear legislative basis or a scheme that replaces, not duplicates, existing taxes.

The Economic Squeeze on Informal Transport Workers

Dispatch riders operate on thin profit margins. A typical trip might cost a customer between N500 and N2,000. After fuel, maintenance, and risk, daily earnings are modest. The imposition of:

• High annual levies (N25,000+ to multiple bodies),
• Daily per-entry fees (N300 x multiple entries),
• And the threat of vehicle impoundment for non-compliance,

creates an unsustainable economic model. It pushes workers into debt, encourages corruption (e.g., paying bribes to avoid impoundment), and can reduce service availability in the city.

Governance and Revenue Drive vs. Economic Impact

The FCT Administration, like all governments, needs revenue for infrastructure and services. The proliferation of tax collection agencies often points to a revenue drive where different units compete for funds. However, this approach can backfire. It stifles small businesses, formalizes the informal sector through harassment rather than incentives, and damages government-citizen trust. The protest is a symptom of poor coordination between the FCTA and the Area Councils regarding their respective revenue jurisdictions over commercial activities.

Practical Advice: For Affected Riders and Policymakers

For Dispatch Riders and Associations

1. Document Everything: Keep receipts and records of all payments made to AMAC, Bwari, Gwagwalada, and any FCTA agents. This is crucial evidence for any legal or administrative challenge.
2. Formalize Your Association: Ensure your riders’ union or association is legally registered. This lends credibility and creates a clear channel for negotiation with authorities.
3. Seek Legal Clarity: Engage with legal aid organizations or pro-bono lawyers specializing in commercial law and citizens’ rights. Request a written explanation of the legal basis for the N25,000 levy and the N300 per-entry fee. Cite the constitutional principle against multiple taxation.
4. Engage Through Proper Channels: While protests are a right, sustained engagement with the FCT Transportation Secretariat, the Minister’s office, and the Area Council chairmen is essential. Present your documented case formally.
5. Explore Alternative Models: Propose a unified, single annual permit system managed by a designated body (e.g., the FCT Transportation Secretariat) with a clear revenue-sharing formula with the Area Councils, if applicable.

For FCT Policymakers and Administrators

1. Conduct a Jurisdictional Audit: Immediately review all existing tax and levy statutes governing commercial motorcycle operations in the FCT. Clearly delineate which tier (FCTA vs. Area Council) has the authority to levy what.
2. Harmonize, Don’t Multiply: If a new FCT-wide levy is deemed necessary, it must replace, not add to, the Area Council levies. A single, transparent, and affordable annual fee is more administratively efficient and less oppressive.
3. Suspend Controversial Collections: Pause the collection of the N25,000 levy and the N300 per-entry fee pending the outcome of the jurisdictional audit and stakeholder dialogue.
4. Institute a Dialogue Forum: Create a permanent committee with representatives from the FCTA, all six Area Councils, and legitimate dispatch rider unions to discuss regulatory and fiscal matters.
5. Consider the Broader Economy: Recognize that affordable last-mile logistics support businesses (e.g., food delivery, e-commerce) across Abuja. Over-taxing this sector has negative ripple effects on the wider urban economy.

FAQ: Common Questions About the FCT Dispatch Riders’ Protest

What exactly are dispatch riders protesting?

They are protesting the requirement to pay what they consider overlapping or duplicate taxes and fees to multiple government bodies (Area Councils and the FCT Administration) for operating commercial motorcycles in Abuja. The specific new demands include a N25,000 annual levy and a N300 fee per entry into the city centre.

Is it illegal to pay taxes to both the Area Council and the FCT Administration?

This is the core legal dispute. Nigerian law prohibits multiple taxation on the same economic activity by different tiers of government. If the levies serve the same purpose (e.g., an operational permit), the riders argue the FCTA’s levy is illegal because they already pay a similar tax to the Area Council. The legality depends on the specific wording of the enabling laws for each levy.

What happened to the protest?

The protest, which involved a street march to the FCT Administration Secretariat, was suspended on the same day (February 19, 2026) after leaders of the dispatch riders met with officials from the FCT Transportation Secretariat. A resolution was reportedly being sought through continued dialogue.

Who is responsible for collecting taxes from commercial riders in Abuja?

Traditionally, the six Area Councils (like AMAC, Bwari) collect levies from businesses operating within their jurisdictions. The FCT Administration, through its various departments (like Transportation or Revenue), also has authority over territory-wide matters. The current conflict arises from a lack of clear, public demarcation of these responsibilities for the motorcycle taxi sector.

What is the N300 “per entry” fee?

This is an alleged daily fee charged to riders each time they cross into the central business district of Abuja (often referred to as “the successful” or “success”). Riders claim this fee is collected by agents of the FCT Administration and is on top of their annual taxes. If true, it functions as a toll for access to the city centre.

Conclusion: Towards a Harmonized and Fair System

The protest by FCT dispatch riders is more than a simple labour dispute; it is a case study in the challenges of governing Nigeria’s complex megacities. It exposes the pitfalls of uncoordinated revenue generation that burdens the most vulnerable economic actors. The riders’ stance is clear: they accept their duty to pay taxes but reject a system that demands payment to multiple pockets for the same right to work.

The path forward requires political will from the FCT Administration, particularly Minister Nyesom Wike, to assert control over the revenue collection process. A forensic audit of all applicable laws is the first step. The ultimate goal must be a single, transparent, and affordable permit system that respects the constitutional ban on multiple taxation, ensures Area Councils receive their constitutionally allocated revenues through a clear formula, and allows dispatch riders to operate without the constant threat of financial ruin or vehicle seizure. The suspension of the protest offers a window of opportunity for dialogue. The test will be whether that dialogue leads to a lasting, equitable solution or merely a temporary pause before the next confrontation.

Sources and Further Reading

The information in this article is based on the original report published by Daily Post Nigeria on February 19, 2026, which cited statements from the News Agency of Nigeria (NAN) and a riders’ spokesperson, Mr. Olawale Ilesanmi. Key details include the protest location, the cited tax amounts (N25,000 levy, N300 per-entry fee), the list of Area Councils (AMAC, Bwari, Gwagwalada), and the meeting with FCT Transportation Secretariat officials.

For legal context on multiple taxation in Nigeria, reference is made to the Constitution of the Federal Republic of Nigeria (1999), particularly the provisions on the taxing powers of the three tiers of government. Readers are encouraged to consult official publications from the Federal Inland Revenue Service (FIRS) and the FCT Administration for official statements and tax codes.