Multiple taxation, extortion create problems for consumers – Cattle dealers

The Amalgamated Union of Foodstuffs and Cattle Dealers of Nigeria (AUFCDN) has expressed concerns over the persistent issue of multiple taxation and extortion faced by its members during the transportation of cattle and foodstuffs across Nigeria, particularly in the South East.

Dr. Mohammed Tahir, National President of AUFCDN, highlighted these issues during a courtesy visit to the Minister of Livestock Development, Alhaji Idi Mukhtar Maiha. He explained that illegal tax collections and road extortion discourage smooth operations and inflate transportation costs, leading to higher consumer prices for food products.

Dr. Tahir shared an example of rerouting challenges where members now bypass shorter routes (e.g., Mubi-Adamawa-Taraba-Cross River) for longer alternatives (Yola-Numan-Gombe-Wudil-Kano) to avoid extortion hotspots. These challenges are prompting members to explore innovative livestock management techniques to adapt to the current situation.

Responding to the concerns, Minister Maiha urged the union to collaborate with the government’s initiatives, such as modernizing abattoirs and tackling cattle rustling. Barr. Saleh Magama, AUFCDN’s legal adviser, emphasized the union’s role in bolstering food security and facilitating the seamless flow of agricultural products nationwide.
Source: DailyTrust

Expert Review for Agri-Food Stakeholders
The challenges faced by AUFCDN highlight systemic issues within Nigeria’s logistics and transportation infrastructure for agricultural products. Multiple taxation and extortion not only increase operational costs for food and livestock dealers but also disrupt the overall efficiency of the food value chain. These bottlenecks are especially concerning given the critical role of cattle and foodstuff transportation in ensuring national food security.

Key Observations:

1. Impact on Food Prices: Rising transportation costs due to illegal taxation contribute to inflated consumer prices, making essential commodities less affordable.
2. Logistical Inefficiencies: Longer travel routes undermine supply chain efficiency, increasing spoilage risks for perishable goods and reducing profit margins for farmers and traders.
3. Innovation Adaptation: The union’s exploration of new livestock management techniques suggests a proactive response to logistical constraints, but it highlights the need for systemic reforms.

Recommendations for Stakeholders

1. Policy Advocacy: Stakeholders should lobby for strict enforcement of anti-extortion laws on transit routes and streamline tax regulations to eliminate redundancies
2. Collaborative Initiatives: AUFCDN and related unions should partner with the government to develop a transportation framework that ensures safe, cost-effective movement of goods.
3. Infrastructure Investments: The government should prioritize establishing modern abattoirs and cold-chain logistics hubs to minimize product losses and improve operational efficiency.
4. Public Awareness Campaigns: Educate transporters and union members about their rights to reduce vulnerability to illegal tolls and extortion.
5. Technological Integration: Encourage the adoption of digital payment and tracking systems to improve transparency and monitor transportation routes.