Nigeria’s Tax Harmonisation Plan to Curb Food Inflation, Boost Agricultural Transport

The Chartered Institute of Taxation of Nigeria (CITN) has applauded a recent resolution by Nigerian state governors to harmonise transportation levies and eliminate illegal roadblocks that hinder the movement of agricultural goods across the country. The move, aimed at easing supply chain disruptions, is expected to significantly improve food availability and help curb the nation’s high inflation rate.

At the latest Nigeria Governors’ Forum (NGF) meeting, state leaders agreed to streamline levies and dismantle unauthorized checkpoints that have long been barriers to agricultural logistics. The president of CITN, Innocent Ohagwa, commended this unified stance, noting that multiple and illegal levies have negatively affected food distribution and affordability nationwide.

Ohagwa stressed that uniform implementation of this directive across all states would enhance public confidence, reduce transportation costs, and provide relief to millions of Nigerians battling rising food prices. He also urged state governors to monitor the activities of their local government chairmen and internal revenue services to ensure compliance with the directive.

Highlighting the need for structural reform, Ohagwa encouraged states to allocate an appropriate portion of their Internally Generated Revenue (IGR) to local governments. This, he argued, would ease financial pressure at the local level and ensure better execution of economic policies affecting rural and agricultural development.

The CITN reiterated its long-standing position against unregulated taxation practices, calling on all levels of government to implement people-oriented reforms. This resolution follows a federal briefing on the security and economic risks of excessive checkpoints and levies. Nigeria’s food inflation stood at 21.14% in May 2025, underlining the urgency of resolving systemic barriers in the food supply chain.

Source: Leadership