Unmasking the Shadows for Government's attention: The corruption in the revenue collection from Okada, Keke, and Taxi Drivers in Oyo State

by John OLLA – Acthub | 07030658304

Introduction:

In recent times, the streets of Oyo State have witnessed an alarming trend: illegal collection of revenue from Okada (Motorcycle) riders, Keke (Tricycle) riders and Taxi drivers by saying unethical solicitation. This clandestine operation not only violates principles of tax fairness but also raises serious questions about accountability, transparency and value for money.

Illegal Tax System: What makes this practice different is not just the collection of fees but also the complete lack of a legal framework for such taxation. Touts operate beyond the control of any official agency, exploiting hard-working individuals struggling with the challenges of their careers. These passengers and drivers are subjected to arbitrary fees, often without clear explanation or justification.

Lack of responsibility: One of the most obvious problems in this scenario is the complete lack of responsibility. The touts did not provide any receipt or proof of payment to the driver. Instead, they place a marker on the vehicle's windshield to indicate payment.

This “marker” system not only lacks transparency, but is also susceptible to abuse because it can be easily removed, leaving drivers vulnerable to multiple payment requests.

Tax justice: A call for justice and fairness: Tax justice is based on the principles of fairness, justice and transparency in the collection and use of public funds. The current situation in Oyo State, where touts act as de facto tax collectors without any oversight, goes against these principles. The lack of an appropriate tax legal framework encourages exploitation and erodes the foundations of tax justice.

Value for money of revenue: The lack of a formal system also raises concerns about the effective use of revenue. Without appropriate accountability mechanisms, there is a risk that these unregulated funds will not be directed towards public services or infrastructure development. This raises questions about the overall value of the proceeds from the revenue collection process.

Recommendations for Reform:

Legal Framework and Regulation:

Enactment of Legislation: The Oyo State House of Assembly should enact legislation addressing the problem emanating from revenue generation in transportation services. This legislation should clearly address the legal framework for revenue/taxation collection, outlining permissible fees and penalties and punishment for illegal collection.

Regulatory Bodies: Enhance the capacity of regulatory bodies to oversee and enforce the legal provisions revenue collection in transportation sector. These bodies should be responsible for monitoring compliance, investigating complaints, and taking appropriate actions against those engaging in illegal fees collection.

Digital Payment Systems:

Encourage Digital Transactions: Promote the use of digital payment systems for revenue collections that will not be limited to transportation but the one that can be used for other purposes. Implementing electronic payment options reduces the likelihood of funds being siphoned off by touts and ensures a transparent tracking of transactions made without turning revenue collection into money for the boys.

Mobile Applications: Introduce user-friendly mobile applications that allow drivers to make payments directly to government-approved channels that blocks people or individuals from have physical contact with cash. This not only streamlines the process but also minimizes the risk of corruption.

Issuance of Official Receipts:

Mandatory Receipts: Make it mandatory for all revenue collectors, whether they are government officials or authorized agents, to issue official receipts for every payment made and confirmed. Receipts should include details such as the amount paid, purpose of payment, and a unique transaction ID generated from the Point of Payment (PoP).

Auditing Mechanisms: Implement periodic collaborative/inclusive audits of revenue collection activities to ensure that the revenue generated aligns with official records which makes it easy for Citizens’ Accountability Reporting. This will serve as a deterrent to corruption and provide an additional layer of accountability.

Public Awareness Campaigns:

Educational Initiatives: Launch extensive public awareness campaigns to educate Okada, Keke, and Taxi drivers about their rights and the proper procedures for revenue payment. This includes informing them about the legal channels through which they should make payments and the consequences of engaging with illegal revenue collectors.

Community Engagement: Involve community leaders and associations in disseminating information and encouraging responsible tax practices. Community engagement can foster a sense of responsibility and solidarity among drivers. This should not be limited to information dissemination alone but also the policy formulation itself.

Whistleblower Protection:

Anonymous Reporting Channels: Establish anonymous reporting channels for drivers to report instances of illegal fees collection and collectors. Often drivers are afraid of reporting collector to the government because of the fear of was might happened to them on the street. Implement robust whistleblower protection mechanisms to safeguard those who come forward with information.

Collaboration with Stakeholders:

Engage Transport Associations: Collaborate with transport associations and unions to create a united front against illegal revenue collectors. By working together, the government and these associations can establish mutually beneficial systems that prioritize the interests of drivers while ensuring revenue collection for public services. The parlance called “after” (After is the money collected from drivers after the official hours of the day) can be addressed properly in the context of driver extortion.

Conclusion:

The exploitation of Okada, Keke and Taxi drivers through illegal revenue collected by touts in Oyo State is a serious violation of the principles of tax justice. Urgent reforms are needed to establish a fair and transparent tax system that promotes accountability and ensures that proceeds contribute to the betterment of society by increasing the Internally Generated Revenue (IGR). It is time for the government to act decisively and end this unjust practice, fostering an environment where every citizen can contribute to the development of Oyo state with faith in the system. Ministry of Youth & Sports, Oyo State Government Oyo State Anti-Corruption Agency OYO STATE LAWSAN