In response to ICIR/Economy Post story, Rivers State govt dissolves all revenue agencies

AFTER an investigative story funded by the International Centre for Investigative Reporting and co-published by Economy Post, Rivers State government has dissolved all taskforces, revenue agencies and other entities doing business on behalf of the state.

A data-driven report done by Economy Post Managing Editor, Mr Odinaka Anudu, had revealed for the first time that Rivers State generates a minimum of N55.234 billion ($34.20 million) from 62,418 commercial vehicles, 24,432 tricycles and 10, 892 motorcycles in road tax every year.

However, only 0.4 percent of the money goes into state coffers, as the rest is being pocketed by private individuals and various unions.

READ ALSO: How non-state actors pocket Rivers State’s N55bn transport revenue

Announcing the dissolution of all taskforces, revenue collecting agencies and others doing business on behalf of the state government, Rivers State Signage and Advertisement Agency (RISAA) Managing Director, Mr Aye Pepple, said the dissolution took effect on March 15.

“The Rivers State Signage and Advertisement Agency (RISAA) hereby announces the dissolution of all task forces, revenue agents, consultants, contractors and representatives doing business on behalf of the agency with immediate effect.

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“Furthermore, there will be a revalidation exercise, which commencement date will be communicated to all affected parties, and until this exercise is concluded, the public is advised not to engage in any dealings with anyone on behalf of the agency,” the statement read.

The report had found that the first group of persons taking a large chunk of Rivers State’s road tax is the National Union of Road Transport Workers (NURTW), which is notorious for under-reporting transport tax collections across Nigeria.

Next is a company known as De-Jonny West Africa Limited, which is owned by three persons from the same family – two of which have died.

The firm, which collects road tax from tricycles at Obio-Akpor Local Government Area, is owned by Onukem Ovundah, Onukem Temple, and Onukem Enyinda.

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Enyinda Onukem was the traditional prime minister of Okporo, one of the communities in Obio-Akpor Local Government Area.

Onukem Temple was the zonal leader of Rivers State Task Force on Street Trading, Illegal Motor Parks and Markets. Both of them are dead.

The company is now managed by Kingsley Onukem.

An Associate Researcher at African Centre for Tax and Governance, Mr Timothy Usman, said automation was the only way Rivers State could reverse the situation.

“When a local government in Dakar, Senegal, wanted to collect a tax from cyclists, the officials sat down with them on what they wanted the money to be used for.

READ ALSO: Lagos records zero revenue from road taxes, ‘Agberos’ pocket N123bn

“We can replicate that here. But more importantly, automation of the process is the way to go. People need to pay the road tax on smart payment platforms that are available.

“However, there is a need for a political buy-in for automation to work,” he said.