FCTA Temporarily Suspends Enforcement of Drivers and Riders Permit Levy After Stakeholder Backlash

The Federal Capital Territory Administration (FCTA) has suspended the enforcement of its newly introduced Drivers and Riders Permit Levy to facilitate further stakeholder consultations, following widespread protests from dispatch riders over what they described as multiple taxation and excessive fees.

Policy Reversal After Protests

The suspension was issued by Dr. Chinedum Elechi, Mandate Secretary of the FCTA Transportation Secretariat, in a directive to First Capital Cargo Ltd, the firm contracted to collect the levy. The measure will remain in place until further engagement with all relevant stakeholders, signalling a pause in the government’s revenue enforcement while concerns are reviewed.

The move follows large-scale protests by thousands of dispatch riders, who marched to the FCTA Secretariat in Abuja on 19 February, demanding intervention from the FCT Minister, Nyesom Wike, to halt what they described as cumulative and debilitating levies imposed by multiple authorities.

Drivers and Riders’ Grievances

Dispatch riders argued that they already incur several mandatory fees before the new levy was introduced. Their concerns included:

• An annual N13,000 levy payable to area councils including Abuja Municipal Area Council (AMAC), Bwari and Gwagwalada.

• A market entry charge of N300 each time they operate within certain zones of the FCT.

• The newly introduced N25,000 permit levy by the FCTA Transportation Secretariat a substantial addition to their cumulative costs.

Protesters labelled the cumulative effect of these charges as multiple taxation, arguing that their operational margins were being eroded and that the fee structure lacked clarity and alignment with existing council levies.

Government’s Response and Next Steps

Dr. Elechi’s suspension order acknowledges the riders’ concerns and directs a pause in enforcement while further engagements with relevant parties are conducted to address systemic issues and develop a more sustainable, equitable revenue framework.

Though the FCTA has not yet announced a revised levy structure or timeline for the stakeholder consultations, the suspension represents a significant shift from enforcement to dialogue, emphasising the need for policy calibration in response to operational realities on the ground.

Stakeholders and transport industry advocates will be monitoring subsequent engagements closely, particularly regarding how any revised levy framework balances fiscal revenue needs with the economic sustainability of transport operators within the FCT.

The FCTA’s suspension of the Drivers and Riders Permit Levy underscores the challenge of instituting new revenue measures without adequate stakeholder engagement and impact assessment. The decision to postpone enforcement in favour of further consultations reflects both public pressure and the administration’s willingness to revisit controversial policy decisions. As the dialogue unfolds, policymakers and industry actors will be seeking clarity on a harmonised and fair levy structure that supports revenue goals without imposing disproportionate financial burdens on transport operators.