Policy Framework for Fair and Effective Local Taxation of Outdoor Advertising Structures in Rivers State, Nigeria

Abstract

This study investigate Policy Framework for Local Taxation on Outdoor Advertising Structures (OAS) in Rivers State. It evaluates the existing legislative and regulatory framework governing Outdoor Advertising Structures (OAS) taxation and its impact on advertisers and local government revenue. Utilizing a mixed-methods design that combines exploratory and descriptive approaches, the research targeted outdoor advertising investors and regulators along Ada-George and Ikwerre roads in Obio/Akpor and Port Harcourt Local Government Areas (LGAs). This study, anchored on Fair Value, Neutrality, Benefit-Received, and Ability-to-Pay taxation theories. Guided by a pragmatic philosophy, it employed a mixed-methods design surveying 150 respondents and interviewing 20 informants who participated in interviews, achieving a 90% response rate for surveys and an 80% participation rate for interviews. The research highlighted challenges in the taxation system, including ambiguous tax laws, arbitrary enforcement, and jurisdictional conflicts. While public awareness of tax regulations is high, there are gaps in understanding and concerns about inadequate enforcement and tax revenue reinvestment. Key areas for improvement include establishing a standardized tax framework, fostering stakeholder collaboration, and integrating advanced technology for better efficiency and transparency. The study recommends periodic audits, capacity building for local officials, and the use of international best practices, such as Geographical Information System-based digital registries, to create a fairer and more effective taxation system. The proposed framework aims to make the outdoor advertising taxation system in Rivers State equitable, transparent, and sustainable.