KADIRS, Freight Haulers Strike Deal on Taxation, Regulatory Compliance
In a strategic move to enhance revenue generation and streamline freight operations in Kaduna State, the Kaduna State Internal Revenue Service (KADIRS) has sealed a crucial partnership with the National Freight Haulers Association (NFHA). The agreement, reached during a high-level meeting on March 13, 2025, underscores a shared commitment to improving tax compliance, tackling regulatory loopholes, and optimizing the state’s revenue system.
TACKLING REVENUE LEAKAGES IN FREIGHT OPERATIONS
For years, Kaduna has faced significant tax leakages in the freight sector, with many vehicles operating with fake license plates and expired particulars. KADIRS, under the leadership of Comrade Jerry Adams, is now addressing these challenges head-on by working directly with NFHA to implement a unified interstate road tax policy. This initiative is expected to eliminate tax evasion, enhance transparency, and create a more predictable business environment for transporters.
A DATA-DRIVEN APPROACH TO REGULATORY COMPLIANCE
During the meeting, Engr. Ado Ahmed, the Northwest Coordinator of NFHA, presented a proposal outlining strategies for improving tax collection and ensuring stricter compliance. KADIRS welcomed the initiative, emphasizing the need for a data-driven enforcement mechanism that will seamlessly integrate vehicle registration, taxation, and regulatory oversight to identify and penalize non-compliant operators.
BALANCING REVENUE GROWTH WITH BUSINESS EFFICIENCY
Rather than a punitive approach, the agreement aims to strike a balance between tax enforcement and operational efficiency. The plan includes:
Simplifying the tax collection process to encourage voluntary compliance.
Ensuring fair taxation that supports freight operators while maximizing revenue.
Strengthening enforcement against fraudulent vehicle registration practices.
With these measures, Kaduna’s Internally Generated Revenue (IGR) is expected to witness a significant boost, while freight businesses will benefit from a more structured and predictable tax system.
A MODEL FOR SUSTAINABLE FREIGHT TAXATION
By adopting industry-led solutions, Kaduna is setting an example for other states in leveraging strategic partnerships for better tax administration. The next step will be a formal review and phased implementation of NFHA’s recommendations, ensuring that policies align with both government revenue targets and industry realities.
COMMITMENT TO CONTINUED COLLABORATION
The discussions ended on a highly positive note, with both parties expressing satisfaction and reaffirming their commitment to a lasting partnership. This alliance is poised to enhance tax compliance, strengthen freight operations, and establish Kaduna as a model for effective revenue administration in the transport sector.
By prioritizing collaborative tax solutions, KADIRS is demonstrating leadership in fiscal reform—a move that will not only strengthen Kaduna’s economy but also attract further investment into its transport and logistics sector.
