POS Union Opposes N300 Weekly Levy in Lagos, Seeks Legal Justification

The Point-of-Sale Operators and Allied Informal Financial Workers Union of Nigeria (PAFWUN) has formally opposed the imposition of a N300 weekly levy on POS operators in the Olorunda Local Council Development Area (LCDA) of Badagry, Lagos State. The union described the levy as a form of double taxation and exploitation targeting informal workers who rely heavily on POS services for their livelihoods.

According to a statement issued on August 22, 2026, and signed by PAFWUN’s General Secretary, Salako Kayode, the union has demanded the immediate suspension and outright cancellation of the levy. The union insists that such a charge lacks a clear and transparent legal foundation. PAFWUN further called on the Lagos council authorities to publish the specific law, bye-law, regulation, or statutory instrument that authorizes the collection of this weekly fee from POS operators.

Concerns Over Double Taxation and Informal Sector Impact

The union argues that imposing the levy amounts to double taxation, as POS operators already contribute to various taxes and levies under existing frameworks. Many of these operators are part of the informal economy, where profit margins are often thin and unpredictable. The additional financial burden imposed by the N300 weekly charge threatens their economic sustainability.

PAFWUN highlighted that the informal financial sector plays a crucial role in Lagos’ economy by facilitating cashless transactions and financial inclusion. Any undue financial pressure on POS operators could disrupt these services, adversely affecting consumers and small businesses that depend on them.

Demand for Transparency and Accountability

In addition to seeking cancellation of the levy, the union has called for full transparency regarding the funds collected since the introduction of the charge. PAFWUN demands that the council publish a detailed account of all monies collected from POS operators to date. This call aligns with broader demands for accountable governance and proper use of public funds within local government areas.

Salako Kayode emphasized that without a clear legal basis and transparent accounting, the levy should not continue. The union warned that failure to address these concerns promptly could lead to escalated protests and legal challenges from POS operators and allied informal workers.

Wider Implications for Informal Financial Services

The dispute highlights the ongoing challenges faced by informal sector workers in Nigeria, especially those involved in financial services such as POS operations. While local governments seek new revenue streams to enhance service delivery, imposing levies without clear legal backing risks alienating vital economic contributors.

Stakeholders suggest that constructive dialogue between the Lagos council and representatives of informal workers is essential to craft policies that support both revenue generation and the welfare of small-scale operators. Sustainable taxation policies should consider the economic realities of informal workers to avoid unintended negative consequences.

As the situation develops, industry observers and economic analysts will be watching closely to see how the Lagos council responds to PAFWUN’s demands. The outcome could set important precedents for taxation and regulation of informal financial services across Nigeria.