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Double Taxation on Agricultural Commodities in Kogi State rural markets: Open Letter to Governor Ahmed Usman Ododo

by Our Reporter
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His Excellency Alhaji Usman Ododo,

The Executive Governor of Kogi State,

Governor’s Office,

Lokoja,

Kogi State.

 

Dear Governor Ododo,

 

I hope this message finds you in good health. I am writing as a concerned citizen and a stakeholder in Kogi State’s Agricultural sector, particularly within the rural communities of Ayetoro Gbede in the Ijumu Local Government Area.

 

I wish to bring to your attention a pressing issue that is significantly affecting the livelihoods of our farmers and local commodity-linking agents to wit: The Pervasive Double Taxation on Agricultural Commodities.

 

The Agriculture sector

is an important sector in Nigeria and to a larger extent, our dear Kogi State which is responsible for sustaining industrial growth and reducing rural poverty level as well as providing sustenance for numerous families and contributing to our economic stability.

 

Unfortunately, the government have taxed the sector heavily through the price and distribution systems

and on its exports, to transfer a substantial portion of

the agricultural surplus to industry (urban areas), and this current imposition of excessive tax burdens on agricultural products poses an insurmountable challenge for our farmers and agents. There is good evidence that this policy

has reduced agricultural growth.

 

Reports indicates that some consultants are demanding exorbitant fees—surpassing ₦300,000 for each 30-ton truck—under the guise of tax collection. In contrast, neighbouring states, which boast a more competitive agricultural trading environment, typically charge grading fees ranging from ₦1,500 to ₦3,000 per metric ton, encompassing both State and Local Governments’ revenue.

 

In Kogi State, however, our fees often exceed the net profits from these sales, resulting in an environment where legitimate agricultural endeavours become untenable and dissuading farmers from their vital work.

 

The issuance of multiple receipts for the same tax obligation further complicates the situation, creating unnecessary confusion and frustration for our farmers and agents alike. The current reliance on individual consultants not only hinders effective revenue generation for the state but also creates opportunities for corruption and malpractice, as these consultants often do not remit funds directly to the government.

 

In the light of these critical issues, I respectfully urge your esteemed office to consider the following recommendations for immediate action:

 

1. Establish a streamlined process for direct government collection of agricultural taxes. This initiative would simplify the taxation framework for farmers and agents, ensuring transparency in revenue collection.

 

2. Implement a robust regulatory framework to monitor any fees or charges levied on farmers and agents for tax-related services, thereby curbing exploitative practices that endanger our agricultural sector.

 

3. Facilitate open dialogues with agricultural stakeholders in Kogi State to gather insights and recommendations that would inform tax policy and reflect the realities faced by our rural farmers and agents.

 

4. Launch comprehensive awareness campaigns aimed at educating farmers about their tax responsibilities and clarifying the tax collection process, thereby reducing confusion and promoting compliance.

 

By adopting these measures, we can establish a fair and equitable taxation system that nurtures agricultural growth and supports our committed farmers. They merit an environment that empowers them to thrive without the burden of excessive taxation.

 

Your leadership and dedication to enhancing the lives of Kogi State citizens are greatly appreciated. I sincerely trust that you will take these matters seriously and act promptly to address the situation, which would greatly benefit our farmers and secure the future of agriculture in our state.

 

Thank you for your attention to this important issue. I look forward to seeing meaningful changes in our agricultural taxation system.

 

Yours sincerely,

 

Aribido David Jayeoba.

Kogi born

Commodity Aggregation Expert and Agricultural Consultant.

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