WARRI/Nigeria: Nigeria’s new tax law, which took effect on January 1, has begun to generate anxiety and uncertainty among traders and residents of Warri South Local Government Area of Delta State, as many struggle to understand its implications for daily business transactions.
The law, designed to improve tax compliance, expand the tax net and promote transparency in income reporting—particularly through electronic channels such as bank transfers, USSD and POS payments—seeks to ensure that individuals and businesses are taxed in line with their actual earnings. However, its implementation at the grassroots level appears to have created confusion, especially within the informal sector.
In Ubeji community, a trader, Mrs. Otobo Oghale, said the policy has already affected her business operations. She explained that fears of possible tax deductions on undocumented electronic transactions forced her to stop using her POS machine, opting instead for cash payments. According to her, this decision has led to a noticeable drop in sales, particularly among customers who depend on electronic transfers, prompting her to call for proper sensitisation and public enlightenment.
At Igbudu Market, another trader, Mrs. Queen Apoda, expressed concern that the year may be difficult for small-scale traders if clarity is not urgently provided. She said many traders do not understand how the new tax system works, warning that uncertainty could slow down business activities. Apoda noted that for traders who constantly reinvest their capital, separating profit from turnover is challenging, making accurate profit calculation almost impossible. She added that past government policies, such as the removal of fuel subsidy, had already worsened the cost of living, leaving traders wary of new fiscal measures.
A resident, Mr. Michael Godspower, said he had no objection to paying taxes but described the process of explaining income and expenditure before deductions as stressful and burdensome for ordinary citizens who lack proper financial records.
Residents of Warri South are therefore urging relevant authorities to intensify public awareness campaigns and issue clear, simplified guidelines to help traders and residents understand the new tax regime, comply with the law and avoid unnecessary hardship.
