Economy

Inside Lagos’ informal tax system

Nigeria works to collect more taxes and raise money for government projects, and the informal sector, which makes up more than half of the country’s economy, has become a key focus.


But for many small business owners, paying taxes is not simple. Instead of clear formulas, tax amounts are often negotiated, adjusted, and collected in layers. This leaves workers unsure how much they owe, why they owe it, or whether the system is fair.


When officials assessed Omolara Bamidele’s hair salon at N150,000, she bargained it to N80,000.

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