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• Abuja traders device survival tactics to beat crackdown
From Adenna Nnamani, Abuja
Many traders and suppliers in Abuja are quietly changing the way they do business as fears of stricter tax enforcement due to the 2025 tax reform act expected to take effect January 1, spread across the city’s markets. Many prefer cash payments, while others are asking customers to label bank transfers as “loan refunds,” “gifts” or “support” to shift attention from tax authorities.
Investigations by Daily Sun reveal that the trend, which gained momentum early this year, cuts across several sectors, including kitchen appliances, electronics, building materials, fashion and general merchandise. A kitchen appliance dealer who spoke on condition of anonymity, said suppliers recently sent instructions to a WhatsApp group of customers:
“They told us that from January 1, every transfer must be clearly labelled either as loan refund, gift or support.
“They also warned that anyone who fails to comply would be penalised or stopped from buying goods from them.”
Another trader dealing in electrical items said: “They called to say they now prefer cash payments. Cash buyers are being prioritised and given better discounts and incentives than those paying through transfers.”
A wholesaler in Wuse Market, Chinedu, said: “Some of us are not registered companies. Our personal accounts are the same ones we use for business. Now people are scared that every inflow will be treated as profit and taxed, even when it is not.
“As it is now, everybody is just trying to survive. People are not refusing to pay tax. They are just afraid of rules they do not fully understand.”
Economists warn that the shift back to cash payments could hurt the economy in the long run. Chairman, Foundation for Economic Research and Training (FERT), Prof. Akpan Ekpo, said while traders are reacting out of fear, deliberately avoiding electronic payments makes it harder to track economic activities:
“That hurts both government revenue and long-term planning. It also shows a lack of trust between authorities and small businesses. Many traders believe enforcement is more punitive than supportive.
“Mislabelling transactions could cause problems if inconsistencies are discovered in the future. Short-term relief may be tempting, but traders expose themselves to bigger risks later.”
The Tax Reform Act, 2025, seeks to strengthen tax administration and expand Nigeria’s revenue base by tightening compliance and reducing leakages. Key provisions of the Act empower tax authorities to rely more on financial records, digital payment trails and third-party data to assess taxable income, particularly among businesses in the informal and semi-formal sectors.
The law also introduces stiffer penalties for non-compliance. A move analysts say has heightened anxiety among small traders and suppliers, many of whom fear increased scrutiny of bank transactions.
