Abia State Government Debunks Claims of “Draconian Taxation,” Reaffirms People-First Revenue Reforms

Abia State Government debunks claims of harsh taxation, clarifies new revenue reforms, harmonised enforcement, TSA adoption, and digital payment systems aimed at ending touting and boosting accountability.

POAPOA
Sep 14, 2025 - 12:39
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Abia State Government Debunks Claims of “Draconian Taxation,” Reaffirms People-First Revenue Reforms

The Abia State Government has dismissed allegations of “draconian taxation” and “ruthless enforcement,” describing them as false and misleading. In a detailed press statement titled “Reclaiming Revenue, Restoring Trust: Facts on Abia’s People-First Reforms,” the government outlined the measures it has implemented to make revenue collection fair, transparent, and pro-business.

Key Highlights from the Government’s Clarification

1. Ending Touts, Harmonising Enforcement
Governor Alex Otti, upon assumption of office, granted a three-month moratorium on daily collections to end years of harassment by touts. The state then introduced a single Harmonised Task Force to streamline enforcement, eliminate multiple tickets, and stop extortion.

2. Full Implementation of Treasury Single Account (TSA)
Abia now operates a Treasury Single Account, where all state revenues are paid into one account. This reform plugs leakages, improves cash flow management, and provides real-time audit trails—ending the era of opaque accounts operated by MDAs.

3. Ease of Doing Business Measures
Collections have been centralised under the Abia Board of Internal Revenue (BIR) with consolidated demand notices and e-receipting through approved channels such as AbiaPay, banks, PoS, card, transfer, or USSD. An Ease of Doing Business Council is in place to keep processes predictable for investors and businesses.

4. Fair and Region-Competitive Rates
The state stressed that its reviewed rates are moderate and remain slightly lower than those in other South-East and South-South states. The daily e-ticket for tricycles is set at ₦500—a rate agreed upon with tricycle unions, with loading bay payments to non-state actors eliminated.

5. Debunking False Claims
The government dismissed as “bogus and illogical” the claim that ₦450 million is charged per filling station, calling it a fabrication with no basis in the state’s approved schedules.

6. Digital, Cash-Lite System
Abia has embraced a cash-lite payment regime to prevent leakages and protect taxpayers. All payments must be made via AbiaPay, banks, or approved PoS/e-channels, generating official e-receipts for accountability.

7. Access Bank Partnership Clarified
The government clarified that its collaboration with Access Bank is strictly professional and does not grant the bank “15% of collections.” The state’s IGR target of ₦120 billion for 2025 is based on broadening the revenue base, leveraging Aba’s commercial potential, urban renewal, and pro-business reforms—not punitive taxation.

8. Civic Duty and Shared Prosperity
Special Adviser to the Governor on IGR, Emmanuel Okpechi, Ph.D, FCA, stated that taxes represent the government’s share of the prosperity it enables—funding roads, markets, healthcare, and security. He urged citizens to register for the Abia State Social Security Identification Number (ABSSIN), pay only through approved channels, and report any touting or illegal ticketing.

“These reforms are not about punishment but partnership,” Okpechi said. “Together, we can keep revenue honest, end harassment for good, and fund people-oriented development across Abia State.”