Military intercepts insurgents attempting to collect illegal levies as new reporting shows ISWAP’s taxation empire generates far more revenue than the state itself.
By Suleman Ayuba
MAIDUGURI, Nigeria — Nigerian troops have foiled a Boko Haram/ISWAP extortion mission in Yobe State, killing one fighter and disrupting attempts to collect illegal levies from rural communities, military officials said. The operation highlights the insurgents’ entrenched “taxation system,” which has evolved into a multimillion‑dollar shadow economy across the Lake Chad region. Investigations reviewed by TruthNigeria show ISWAP earns an estimated $191 million annually from forced taxes — more than ten times the official revenue of Borno State — funding weapons, logistics, and a parallel governance structure that continues to outpace government control.
A Deep‑Rooted System of Terror‑Imposed Taxation
Sadik Abubakar told TruthNigeria from Yobe State that terrorist groups in Nigeria’s northeast have long treated local communities as taxable subjects, creating a shadow economy that predates recent military operations. Before 2015, Boko Haram controlled multiple local government areas in Borno State, collecting levies disguised as taxes while running a rudimentary administration. As Nigeria’s Defence Headquarters noted in earlier assessments, the insurgents “had constituted authority… and they were even collecting levies which we can term taxes.”
ISWAP later refined this model into a highly structured revenue system. Across Lake Chad territories and parts of Borno and Yobe, the group enforces zakat (livestock tithe), haraji (entry and activity fees), and darayib (market levies). Farmers pay per hectare before planting; fishermen purchase seasonal permits and per‑carton taxes; traders face tolls and monthly fees. Receipts are issued — but refusal often leads to confiscation, imprisonment, or execution. A detailed investigation by HumanAngle has documented these recurring practices in its report on insurgent financing: HumanAngle report.
A comprehensive investigation by The New Humanitarian found that ISWAP earns an estimated $191 million annually from taxation in the Lake Chad region — far exceeding Borno State’s official internally generated revenue of $18.4 million in 2024. Prof. Bello Alhaji Ibrahim, Executive Chairman of the Borno State Internal Revenue Service (BOIRS), disclosed the state’s revenue during a February 2025 press briefing in Maiduguri, attributing the performance to digitized tax collection, public sensitization, tax harmonization, and support from Governor Babagana Umara Zulum. Borno State’s revenue performance is detailed here: TheWill News report.
Meanwhile, ISWAP’s tax empire — ten times larger than the state’s revenue — continues to fuel its operations. The New Humanitarian’s analysis of ISWAP’s taxation system can be found here: The New Humanitarian report.
Security analyst Ahmad Salkida has documented how local Amirs set tax rates based on income, blending limited service provision with ruthless enforcement to sustain the insurgency.
Dr. Ali Markus, who is familiar with Boko Haram’s taxation system in Borno State, told TruthNigeria that such incidents are widespread. In communities like Marte, Abadam, Kukawa, and Guzamala, residents pay ₦5,000 monthly for traders and farmers, ₦2,000 per bag or box for fishermen, and additional road charges of ₦200–₦500. “Who dares disobey the insurgents? They have turned this place into their own kingdom,” he said.
In 2023, Boko Haram attacked villages in Gaidam, Yobe State, killing dozens over unpaid cattle levies — a punishment residents say is typical for refusing to pay.
Farmers in areas under ISWAP control report paying ₦10,000–₦50,000 per hectare, with receipts issued as proof of “protection.” One former fighter described revenues flowing into a central treasury (Baitul Ma-al) used for weapons, stipends, and operations. These practices are further detailed in HumanAngle’s investigation into insurgent financing: HumanAngle report.
TruthNigeria Investigation Reveals the Scale and Resilience of ISWAP’s Terror Economy
A detailed review of multiple reports by TruthNigeria shows how deeply entrenched this parallel tax system has become. ISWAP controls islands and territories across Nigeria, Niger, Chad, Cameroon, and beyond, issuing entry permits (about $13), fishing‑zone fees ($13–$196 per season), and catch taxes ($2.60 per 100kg carton). Fishing alone generates enormous revenue, supported by an estimated 15,000 fishers operating under insurgent authority. Zakat on livestock adds millions more, while arbitrary darayib (market levies) fill the gaps.
This funding model gives ISWAP remarkable resilience. It finances logistics, buys limited local acquiescence through selective services, and in many areas outpaces state revenue. Even with recent military gains — including the Yobe operation that recovered PKT ammunition, AK‑47 magazines, drugs, and tools — the insurgents adapt quickly, relying on smuggling routes, dual‑use goods, and coercion of vulnerable communities. Earlier 2026 interdictions and failed attacks show sustained military pressure, but also the group’s determination to rebuild its revenue streams.
Security analyst Dr. Ali Markus told TruthNigeria that lasting peace requires more than battlefield successes. “Kinetic operations alone cannot defeat this system,” he said. “You need stronger governance, viable economic alternatives, and community resilience to starve this shadow caliphate of its lifeblood.”
A deeper look at insurgent financing — including ISWAP’s taxation structure, enforcement methods, and cross‑border reach — is detailed in HumanAngle’s investigation: HumanAngle report.
Suleman Ayuba is a conflict reporter covering insurgency, security operations, and humanitarian issues across Nigeria’s Northeast for TruthNigeria.
