Abuja Dispatch Riders Prompt FCTA to Halt New Permit Fee

The recently implemented Drivers and Riders Permit Levy by the Transport Secretariat of the Federal Capital Territory Administration (FCTA) has been suspended due to an outcry from Abuja dispatch riders.

The FCTA explained that the suspension is aimed at facilitating further discussions with relevant stakeholders; however, it is reported that last Thursday, the riders halted access to the office of the FCT Minister as part of their protest against what they termed unfair multiple taxation by the administration.

As reported by Abuja Metro, the levy mandated each dispatch rider to pay an annual fee of N25,000, in addition to N300 charged every time they enter a market overseen by the FCTA.

The riders, frustrated by this new levy, pointed out that they already pay various fees to the Abuja Municipal Area Council (AMAC) as well as to the Bwari and Gwagwalada area councils.

Last Thursday, hundreds of riders gathered at the FCTA Secretariat, seeking to address their grievances with the authorities. They demanded intervention from FCT Minister Nyesom Wike against what they described as multiple taxation and extortion.

Mr. Olawale Ilesanmi, a spokesperson for the riders, stated that while they acknowledge their duty to pay taxes and have complied annually, the additional burden presented by the new fee is untenable. He emphasized that the demonstration was a united stance against the imposition of multiple taxes.

The financial strain was highlighted by Ilesanmi, who noted that dispatch riders are currently obligated to pay N13,000 annually to local councils. He expressed disbelief over the sudden emergence of a new fee collector from FCTA demanding an additional N25,000.

“The N25,000 is considerably more than what is paid to the area councils. We are opposing the multiple taxation that adversely impacts us as dispatch riders in Abuja,” said Ilesanmi. “We've been consistently adhering to our tax obligations year after year. Yet, suddenly, another entity appears with a greater demand.”

He also detailed the daily expenses of the riders: “Each entry into a market costs N300. If we attend the market ten times a day, we would need to pay N300 each time.”

Moreover, Ilesanmi pointed out that numerous motorcycles have been confiscated, with owners being pressured to pay the new fee to retrieve their vehicles.

In response to the protest, the FCTA's Transportation Secretariat subsequently announced the suspension of the permit levy. Mandate Secretary Dr. Chinedum Elechi communicated this directive in a letter directed to the Managing Director of First Capital Cargo Ltd, the company responsible for collecting the levy.

This decision came after a dialogue with the leaders of the dispatch riders held on February 19.

The letter included a directive stating, “Following discussions with the association’s leaders and their concerns regarding multiple taxation, you are hereby instructed to suspend the enforcement of the Drivers and Riders Permit Levy. This is pending additional engagement with all pertinent stakeholders. Ensure that this directive is given the necessary attention and compliance.”