The Federal Government has rolled out new regulations to bring millions of informal businesses into the tax net, banning roadside tax collections and cash enforcement nationwide.
At a signing ceremony in Abuja, Wale Edun, Minister of Finance and Coordinating Minister of the Economy, said the presumptive tax regulations mark the transition from legislation to full implementation of reforms introduced between mid-2025 and January 2026.
According to Edun, the framework is designed to expand Nigeria’s tax base without increasing rates, while ensuring transparency, fairness, and consistency across federal, state, and local governments. The regulations were issued under the guidance of the Joint Revenue Board.
Under the new rules, informal businesses with annual turnover of up to N2 million will be exempt from tax. Others within the bracket will pay a flat presumptive levy of one per cent of turnover.
The guidelines prohibit cash collections by tax officials and outlaw the mounting of roadblocks for enforcement, practices long criticised by traders and transport operators. Payments must now be made through approved digital channels.
Olusegun Philip Adesokan, Executive Secretary of the Joint Revenue Board, said the measures create a uniform code for subnational governments and protect small businesses from arbitrary assessments. He added that the reforms aim to widen compliance rather than raise tax burdens.
Joseph Tegbe, Chairman of the National Tax Policy Implementation Committee, described the move as a shift from fragmented practices to structured administration in a sector that accounts for over 80 per cent of employment but contributes minimally to formal revenue.
The government says implementation will be closely monitored, with safeguards in place to ensure fairness as Nigeria targets stronger economic growth.
