Enugu State’s commercial transport sector is set to face a major financial shock in 2025, as the state government introduces a new tax policy that will see Okada riders, taxi drivers, and other vehicle operators shelling out substantial amounts annually. According to the tax structure approved by the Enugu State Internal Revenue Service (ESIRS), led by Mr. Emmanuel Ekene Nnamani, commercial motorcyclists (popularly known as Okada riders) will pay a staggering N146,000 annually, while taxi drivers will be required to fork out N164,250.
The new tax regime, which takes effect from January 1, 2025, has raised eyebrows across the state. Market traders, street vendors, and even water vendors will not be left out, as they will now be subjected to an annual tax of N36,000. This is just a portion of the significant tax overhaul that promises to impact various sectors of the state’s economy.
A Drastic Shift: The Tax Breakdown
The freshly approved tax chart, seen by SaharaReporters, outlines the new figures that commercial drivers and operators in Enugu must now contend with. For instance, tricycle operators (often referred to as Keke Napep riders) will pay N200,750 annually, while mini-bus operators, including small dyna vehicles, will pay N219,000. Larger vehicles, such as 14-seater buses and 18-seater vans, will incur a tax of N237,250.
Water tankers and Sienna vehicles will also be caught in the tax net, paying N237,250 and N346,750, respectively. The tax burden is especially steep for operators of heavy-duty vehicles such as trucks and trailers, with certain categories facing fees in excess of N1 million. For example, miners’ tickets have been set at N1,095,000, and a trailer carrying products or produce will pay as much as N1,642,500.
This new tax structure introduces a daily payment system through an E-TICKET mechanism, which will see Okada riders paying N400 daily, taxi drivers N450, and tricycle operators N550.
State’s Intent: Revenue Generation and Enforcement
Mr. Emmanuel Ekene Nnamani, Executive Chairman of the Enugu State Internal Revenue Service, spoke to the press about the new tax reforms, emphasizing that the changes were necessary to boost the state’s revenue stream. “The introduction of these taxes is in line with our efforts to increase the state’s revenue base and ensure that every sector contributes its fair share towards the state’s development,” Nnamani stated.
He further explained that the funds generated would be directed towards infrastructure development, health care, and other state priorities, aiming to improve the quality of life for Enugu’s citizens.
However, the enforcement of this tax will not be without its challenges. Many commercial vehicle operators have expressed concern over the heavy burden, claiming that the new rates could lead to an increase in transportation costs for ordinary citizens. “This tax will only make life harder for us, and it will force us to raise our fares. We are already struggling to make ends meet, and now this is happening,” said Chijioke Okafor, an Okada rider in the city.
The Bigger Picture: Financial Struggles and Additional Fees
The taxes introduced by the state government are not the only financial obligations facing commercial transport operators. Many of these drivers already contribute to several other levies, including fees for union dues, park management, and payments to loaders who help with passenger operations. These additional costs, combined with the new taxes, are making the situation even more dire for Enugu’s commercial drivers.
“We already pay dues to the unions like RTEAN and NURTW, and we have to pay for parking spaces where we load passengers. If we add this new tax, it becomes too much to bear,” said Kingsley Eze, a member of the Tricycle Association of Enugu.
These mounting expenses are a source of frustration for operators who feel that they are being squeezed by both government authorities and various private sector actors.
Public Reaction: Outrage and Uncertainty
The new tax policy has sparked outrage among various sectors of the Enugu population, particularly the commercial drivers. Unions representing Okada riders, taxi drivers, and tricycle operators have vowed to push back against the tax hike, warning that it will lead to widespread unrest.
“We will not sit back and watch the government destroy our livelihood,” said Lawrence Oji, a member of the National Union of Road Transport Workers (NURTW). “We plan to hold protests across the state if they do not reconsider this decision.”
In addition to these protests, many drivers are considering alternative strategies to cope with the new taxes. Some have suggested that they may begin operating without registration, while others are looking into finding new ways to avoid paying the exorbitant fees. However, the implementation of the E-TICKET system may make it more difficult to evade the taxes.
Political Reactions: Calls for Dialogue
The new tax policy has also drawn attention from political figures, with some calling for a more balanced approach. Senator Ikechukwu Okafor, a member of the Enugu State Senate, expressed concern over the financial strain that the new tax regime could place on small businesses and transportation workers. “I urge the state government to review these tax rates and consider the economic realities that these workers face on a daily basis,” Okafor said in a statement.
Political opponents have also been vocal, accusing the state government of failing to consider the consequences of such drastic increases on the livelihoods of Enugu residents. “This is an unpopular decision that will only harm the poor,” said Chuka Obi, a local politician. “The government should focus on creating job opportunities, not on burdening people who are already struggling.”