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Anambra stops use of agents in petroleum levy collection

Soludo Urges State's IRS To Generate Revenue

Key points

  • Anambra State Government has stopped consultants and agents from collecting levies or enforcing regulations on petroleum marketers.
  • The decision followed complaints by IPMAN over multiple taxation and alleged harassment.
  • Marketers have been directed to pay legitimate taxes and levies directly to government accounts.
  • The government plans further engagement with industry unions to address operational challenges.
  • Authorities say safety, environmental and consumer protection standards will be strictly enforced.

Main story

The Anambra State Government has banned the use of consultants and agents in the collection of levies and enforcement activities involving petroleum products marketers, following complaints by industry operators over multiple charges and alleged harassment.

The decision emerged from a stakeholders’ meeting convened by the state Ministry of Petroleum Resources after the Independent Petroleum Marketers Association of Nigeria (IPMAN) petitioned the government over what it described as excessive levies and interference by third-party agents.

Speaking after the meeting in Awka, the Commissioner for Petroleum Resources, Prof. Charles Ofoegbu, said the move aligns with Governor Chukwuma Soludo’s efforts to create a more business-friendly environment and improve transparency in revenue collection.

According to Ofoegbu, petroleum marketers agreed to continue paying all legitimate taxes and statutory levies, but such payments would now be made directly into government accounts rather than through intermediaries.

He said the government would work closely with operators in the sector to improve compliance while eliminating practices that create unnecessary friction between businesses and regulatory authorities.

The commissioner noted that the meeting brought together key stakeholders, including IPMAN, the National Union of Petroleum and Natural Gas Workers (NUPENG), tanker drivers, the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), regulators and government officials.

Ofoegbu said the government also plans separate engagements with various industry groups to address operational concerns, including the need for infrastructure such as a dedicated trailer park.

He added that the state would continue collaborating with relevant federal regulators to ensure safe and efficient petroleum operations across Anambra.

The commissioner stressed that the government remains committed to protecting consumers and ensuring that petroleum businesses operate within approved safety and environmental standards.

The issues

Petroleum marketers have long complained about multiple taxation, overlapping regulatory demands and the activities of consultants or agents engaged in revenue collection on behalf of government institutions.

Such practices often increase operating costs, create disputes between operators and authorities, and raise concerns about transparency and accountability in revenue administration.

At the same time, governments face the challenge of improving revenue collection while ensuring compliance with safety, environmental and consumer protection standards.

What’s Being Said

“We had fruitful conclusions which included that they must pay all legitimate taxes to the government and they agreed and offered to join the ministry and inland revenue services to ensure these levies are collected and paid into government account.” — Charles Ofoegbu, Anambra Commissioner for Petroleum Resources

“I assured them that under my watch, there will be no agents or consultants and if there is need for any, they will be party to the decision making.” — Charles Ofoegbu, Anambra Commissioner for Petroleum Resources

“We have a duty to our people, we must protect customers and businesses.” — Charles Ofoegbu, Anambra Commissioner for Petroleum Resources

What’s next

The state government is expected to begin direct engagement with individual unions and associations within the petroleum sector to address industry concerns and improve cooperation.

Authorities also plan to strengthen collaboration with federal regulators, including the Nigerian Midstream and Downstream Petroleum Regulatory Authority, to enforce safety, environmental and metering standards.

Bottom line

Anambra’s decision to eliminate consultants and agents from petroleum levy collection is aimed at reducing complaints of multiple taxation and harassment while improving transparency, regulatory compliance and the ease of doing business for petroleum marketers in the state.

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