The Ondo State Government has announced plans to clamp down on revenue officials mounting roadblocks for tax and levy collections across the state, as part of broader efforts to end coercive and illegal revenue practices that have long harassed motorists and burdened businesses. The Acting Chairman of the Ondo State Revenue Service, Mr Bayo Rojugbokan, disclosed this in an interview with the News Agency of Nigeria in Akure on Sunday, reiterating the Joint Revenue Board ban on all road taxes, stickers, and manual revenue collection on highways by state and non state actors.
Rojugbokan emphasised that the ban was aimed at improving the ease of doing business, with the mandate that all tax payments must be digital and through approved channels. He said the enforcement was aimed at ending coercive and illegal revenue practices, noting that the state government had constituted a task force to ensure enforcement. The ODRIS boss explained that the task force would patrol roads and clamp down on those engaging in unauthorised revenue collection and harassing motorists.
“Anybody you see on the road now collecting tax are non state actors, henceforth we’re going after them and arrest them. Apart from the Ondo State task force on illegal revenue collection, the Joint Revenue Board has its own team patrolling to ensure that people do not stay on the road to harass Nigerians again,” he said. “The era of paying tax on the road is over. You cannot pay tax by cash. You pay through the system deployed to make payment easier for everyone. By stopping people on the road and collecting cash from them is an illegal process. It is strange to us in Ondo State.”
From an economic perspective, the move to eliminate roadblock tax collections addresses a long standing complaint from businesses and motorists about the cost and inconvenience of informal revenue collection. Roadblocks manned by revenue officials or their agents have historically been sites of extortion, where motorists are forced to pay arbitrary levies or face delays, confiscation of documents, or other harassment. These practices increase the cost of transporting goods, discourage commercial activity, and create opportunities for corruption. By moving to a fully digital system, Ondo State aims to reduce these transaction costs and improve the predictability of tax obligations.
The ODRIS chairman explained that the new tax law had harmonised tax administration into a single and simplified framework and eliminated multiple taxation. This harmonisation is significant because multiple taxation has been a persistent complaint from businesses operating across different local government areas within states. When each local government imposes its own levies, collected through its own agents often at roadblocks, the cumulative burden on businesses can be substantial. A single, simplified framework with digital payment channels reduces this burden and makes compliance easier.
Rojugbokan said the clampdown would begin from April, in the second quarter of the year, advising residents to report any illegal collectors to the relevant authorities. “Very soon, we will deploy our people and begin to arrest them. If you see anyone, let us know. Our numbers are everywhere. Call us and we will act. As from this month (April), and going forward, there will be no more tax collection on the road in Ondo State,” he said.
The ODRIS boss outlined the digital system that will replace manual collections. “We have started using technology and we will continue to improve on it because that is the only way to make our people happy. Tax collection should not be a burden on taxpayers. You don’t need to come to our office. Just go online, register on the https://www.odirs.ng platform, select the tax you want to pay, generate your assessment and pay through your bank. Your receipt will be sent to your phone,” he said.
Rojugbokan said tax clearance certificates are now being processed seamlessly online without physical visits. “At the end of the year, if you need your tax clearance, you don’t need to come to our office, just apply online or through the nearest tax station. Once approved, it will reflect in your email immediately. Within a day, you will receive notification that your tax clearance is ready for download,” he said. This digital transformation reduces the time and cost of obtaining tax clearance, which is often required for business registration, government contracts, property transactions, and international travel.
The enforcement of the ban on roadblock collections faces challenges. Illegal collectors may resist giving up a source of income, and some motorists, accustomed to paying at roadblocks to avoid delays, may continue to do so out of habit or fear. The task force will need to be visible and consistent in its enforcement to change behaviour. Additionally, the state must ensure that the digital system is reliable, accessible, and user friendly, particularly for taxpayers who may not be comfortable with online platforms or who lack internet access. The state may need to provide support centres or alternative channels for those who cannot use the digital system.
The Ondo State initiative aligns with broader federal efforts to improve the ease of doing business in Nigeria. The Presidential Enabling Business Environment Council has long advocated for the elimination of roadblocks and multiple taxation as barriers to commerce. States that successfully implement these reforms may see improved business activity, higher tax compliance, and increased revenue as informal payments are replaced by formal taxes. For taxpayers, the promise of a simpler, more transparent system is appealing, but trust must be earned through consistent enforcement and reliable digital infrastructure.
