The Independent Petroleum Marketers Association of Nigeria (IPMAN) has called on Governor Chukwuma Soludo of Anambra State to take urgent steps to create a more conducive environment for businesses by tackling the issue of multiple taxation. This appeal was made by Mr. Chinedu Anyaso, the Chairman of IPMAN’s Enugu Depot Community, during the inauguration of the newly elected executive members of the Petroleum Dealers Association of Nigeria (PEDAN), Anambra Branch, on Thursday in Awka, the state capital.
The event marked a significant moment for PEDAN as it ushered in a new leadership team to steer the association’s activities in the state. Mr. Chibuike Izukanne emerged as the Chairman, with Ozomadu Michael appointed as Vice Chairman and Augustine Ejimofor as Secretary. The inauguration ceremony, attended by key stakeholders in the petroleum marketing sector, provided a platform for IPMAN to raise critical concerns affecting its members and the broader business community in Anambra State.
Mr. Anyaso, whose jurisdiction as IPMAN Chairman covers Anambra, Ebonyi, and Enugu states, expressed deep concern over the increasing financial burdens placed on petroleum marketers due to multiple layers of taxation. He highlighted that the proliferation of taxes and levies imposed by various government agencies has become a significant threat to the sustainability of their operations. According to Anyaso, the taxation regime in Anambra has shifted from a more streamlined and consolidated system to one characterized by additional charges that are stifling businesses.
“We used to have a consolidated tax system, which made things manageable for businesses like ours. However, in recent times, we have seen the introduction of new levies such as business premises charges, land use fees, and Local Government Council dues. These additional costs are piling up and creating an unbearable burden for petroleum marketers,” Anyaso lamented. He emphasized that these charges not only increase the cost of doing business but also erode the profitability of an industry that plays a critical role in the state’s economy.
Anyaso further noted that the issue of multiple taxation has been a recurring challenge for IPMAN members, and while the association has been engaging with the state government to seek a resolution, progress has been slow. “We are still in discussions with the government, and we remain hopeful that a solution will be reached soon,” he said. He urged Governor Soludo to prioritize creating a business-friendly environment by reviewing and streamlining the state’s tax policies to eliminate redundant charges and reduce the financial strain on businesses.
The IPMAN chairman also used the occasion to congratulate the newly elected PEDAN executives, commending their commitment to the association and the petroleum marketing sector. He advised the new leadership to uphold the rule of law while advocating for the interests of their members. “As you take on this responsibility, I urge you to remain law-abiding and to work tirelessly to protect the rights and welfare of petroleum dealers in Anambra State,” Anyaso said.
In his acceptance speech, the newly elected PEDAN Chairman, Mr. Chibuike Izukanne, expressed gratitude to the association’s members for entrusting him with the leadership role. He pledged to lead with transparency and dedication, ensuring that the interests of both the association and the state government are harmonized for mutual benefit. Izukanne acknowledged the challenges facing petroleum dealers, particularly the issue of multiple taxation, which he described as a significant impediment to their operations.
“The issue of multiple taxation and harassment by various government agencies has continued to affect our businesses. These challenges make it difficult for us to operate efficiently and contribute effectively to the economy of Anambra State,” Izukanne stated. He assured members that his administration would engage constructively with the state government to address these concerns without compromising the interests of petroleum dealers. “We will approach these issues with dialogue and collaboration, seeking solutions that benefit all parties while ensuring that our members can thrive,” he added.
The concerns raised by both IPMAN and PEDAN reflect broader challenges faced by businesses in Nigeria, where multiple taxation has long been a contentious issue. Across many states, businesses, particularly in critical sectors like petroleum marketing, have decried the imposition of overlapping taxes and levies by state and local government authorities. These charges often lead to increased operational costs, which are ultimately passed on to consumers, contributing to higher prices for goods and services.
In Anambra, the petroleum marketing sector is a vital component of the state’s economy, ensuring the availability of fuel and other petroleum products that power transportation, commerce, and households. However, the rising cost of doing business, driven by multiple taxation, threatens to undermine the sector’s contributions. Petroleum marketers have argued that a more streamlined tax system would not only enhance their profitability but also enable them to maintain stable prices for consumers, thereby supporting economic growth in the state.
Governor Soludo, a renowned economist and former Governor of the Central Bank of Nigeria, has made economic transformation and business development a cornerstone of his administration’s agenda. His government has introduced several initiatives aimed at improving the ease of doing business in Anambra, including infrastructure development and investment promotion. However, the persistent issue of multiple taxation remains a sticking point for many businesses, including those in the petroleum sector.
Stakeholders in the industry have called for a comprehensive review of the state’s tax policies to eliminate duplicative charges and create a more predictable and transparent tax regime. Such reforms, they argue, would encourage investment, boost job creation, and enhance the competitiveness of businesses in Anambra. For petroleum marketers, a resolution to the issue of multiple taxation would also ensure the sustainability of their operations and enable them to play a more significant role in the state’s economic development.
The inauguration of the new PEDAN executive comes at a critical time when the petroleum marketing sector is grappling with not only taxation challenges but also broader issues such as fuel price volatility and supply chain disruptions. The new leadership will need to navigate these complexities while advocating for policies that support the growth and stability of the industry.
As the dialogue between IPMAN, PEDAN, and the Anambra State government continues, there is hope that a mutually beneficial resolution will be reached. The petroleum marketers have expressed their willingness to collaborate with the government to find solutions that address their concerns while aligning with the state’s revenue generation goals. For now, the call for a business-friendly environment remains a top priority, with the hope that Governor Soludo’s administration will take decisive action to address the issue of multiple taxation and create a more enabling environment for businesses to thrive in Anambra State.
