The political resolve in Edo State has rarely looked more united than it did this week, as all 18 local government chairmen stood shoulder-to-shoulder with Governor Monday Okpebholo in a sweeping crackdown on illegal revenue collection that threatens to upend a decades-old shadow economy.
In a meeting at the Government House in Benin City, convened by the Secretary to the State Government (SSG), Osarodion Ogie, and attended by Attorney-General Samson Osagie, the chairmen pledged not only to support the governor’s directive but to actively enforce it in their respective domains.
“This is not just a government policy — it is a public liberation effort,” said Mr Ogie. “For too long, traders, transporters, and small businesses have been at the mercy of unauthorised agents who fleece them under the guise of government authority. That ends now.”
The so-called “illegal revenue collection” in Edo State is neither small nor accidental. For years, it has been an unregulated industry — a parallel tax system where market women, okada riders, bus drivers, and roadside traders pay multiple levies daily to men wielding laminated ID cards, receipts, or even just verbal claims of authority.
The sums are small in isolation — ₦100 here, ₦500 there — but collectively, they run into billions of naira annually. The tragedy, according to state officials, is that none of this money reaches public coffers. Instead, it fuels a chain of rent-seekers — from street enforcers to politically connected “revenue coordinators” — while eroding the credibility of official taxation.
The practice has proven stubbornly resistant to reform. Attempts by past administrations to introduce task forces, issue official badges, or centralise collection have often been sabotaged from within, with legitimate systems infiltrated by rogue operators.
Governor Okpebholo’s approach is as blunt as it is ambitious: suspend all revenue collection — both legal and illegal — for one month across the state, then reboot the system from scratch.
The suspension, announced last week, is designed to break the rhythm of collection, flush out impostors, and create space for a secure, technology-driven system.
“We cannot continue to run a government where citizens see taxation as extortion,” the governor said in a statement. “If we are serious about building infrastructure, improving healthcare, and funding education, revenue must be collected lawfully, transparently, and without intimidation.”
At Monday’s meeting, each local government chairman committed to implementing the governor’s directive at the grassroots level — a rare show of political cohesion in a state known for its fractious politics.
Chairman of Esan West LGA, Mr. Lawrence Okah, told reporters after the meeting: “The governor’s stand is our stand. We are instructing our market supervisors and park managers to halt all collections immediately. Any person found violating this directive will face arrest and prosecution.”
In Oredo LGA, where Benin’s sprawling Oba Market and Ring Road motor parks have been epicentres of extortion, Chairman Mrs. Christabel Omoh-Emina said her council had already mobilised a task force to monitor compliance. “We will not allow anyone to sabotage this effort. The public should know that this is for their benefit.”
The meeting produced a three-pronged enforcement strategy to include, Public awareness campaigns — to inform traders, transporters, and the general public that all revenue collection is suspended, and that any demands for payment during this period are illegal, Joint monitoring teams — comprising council officials, police, and members of the Edo State Security Network, to patrol markets, motor parks, and known collection points and Legal action — swift prosecution of offenders under the state’s anti-extortion laws, with Attorney-General Osagie promising “no sacred cows.”
Mr Osagie was blunt: “If you are caught, you will be prosecuted — whether you are a small collector or a big man hiding behind political influence.”
While the crackdown is immediate, the long-term fix lies in technology. The Edo State Internal Revenue Service (EIRS) has been tasked with designing a centralised, cashless payment platform that eliminates human middlemen.
EIRS Executive Chairman, John Inegbedion, said the system will use mobile apps, point-of-sale devices, and bank transfers to enable direct remittance to government accounts. Receipts will be digital, tamper-proof, and traceable.
“This is not just about stopping extortion,” Inegbedion explained. “It’s about creating a tax culture where citizens know exactly where their money is going and can hold us accountable for it.”
The EIRS plans to pilot the system in Benin markets before rolling it out statewide.
Illegal revenue collection has more than a moral cost; it has economic consequences. For traders, it eats into already thin profit margins. For transporters, it inflates fares and stokes tension with passengers. For the state government, it means leakage of vital funds that could finance public services.
Economist Dr. Isoken Ehigiator notes that the informal “tax” distorts pricing and discourages business growth. “When you have multiple layers of unauthorised payments, small enterprises are less likely to expand or formalise. Over time, this keeps them locked in poverty cycles.”
By scrapping the old system, the state hopes to boost formal revenue collection and improve its fiscal independence from federal allocations.
Not everyone is applauding. Some operators in the transport sector fear that the sudden halt will lead to confusion, especially for those who relied on official tickets issued by councils. Others warn that displaced collectors may turn to petty crime.
A bus driver at Oba Market, who gave his name as Osamudiamen, was sceptical: “We have heard these promises before. They say no more collections, but after two weeks, the boys come back, even stronger.”
Security experts also caution that entrenched revenue cartels — some with political sponsors — may resist the reforms violently.
Governor Okpebholo’s stance comes less than a year into his tenure and ahead of a politically charged 2027 election cycle. By taking on a deeply rooted network of informal collectors, he risks alienating grassroots political structures that have historically thrived on such rents.
But some analysts say the gamble could pay off. “If he pulls this off, he will not only win public trust but also free the local economy from a major chokehold,” says political analyst Mike Oronsaye. “It’s a populist move with real governance value.”
So far, public reaction has been cautiously optimistic. Market leaders in Benin City, Uromi, and Auchi have welcomed the move, urging the government to ensure that the suspension does not lapse into selective enforcement.
Mrs. Rose Igbinovia, head of the Women Traders Association at Uselu Market, said: “We are happy. These boys have been tormenting us for years. But the government must keep their promise. No more halfway measures.”
Over the next month, all eyes will be on Edo State’s markets, parks, and streets to see if the ban holds. The challenge will not be merely to dismantle the old system but to replace it with one that is both efficient and trusted.
If successful, Edo’s crackdown could serve as a model for other Nigerian states grappling with similar problems. If it fails, it will join a long list of well-intentioned reforms undone by political compromise and public fatigue.
For now, the message from Osarodion Ogie and the council chairmen is clear: “Illegal collection is over. The era of accountability has begun.”