Abuja: The Federal Government has prohibited cash collection of taxes and banned the mounting of roadblocks for revenue enforcement, as part of fresh regulations to implement Nigeria’s new tax laws nationwide. The Executive Secretary of the Joint Revenue Board, Mr Olusegun Adesokan, announced these changes during the signing of the Presumptive Tax Regulations and Guidelines on the Implementation of the Tax Laws in Abuja on Tuesday.
According to News Agency of Nigeria, the new framework aims to end informal, coercive, and fragmented tax practices, particularly at the subnational level. Adesokan emphasized that the regulations would entrench transparency and equity in tax administration, especially within the commerce and informal sectors. He further explained that nano and small businesses with an annual turnover of N12 million or below would be exempted under the presumptive tax regime. A one percent tax rate on turnover has been introduced for other categories of informal businesses, with a push for technology-driven payment systems.
Adesokan noted that the guidelines provide a uniform structure for subnational governments in taxing the commerce sector, integrating operators into the formal system through a Tax Identification platform. The alignment of states behind the framework signifies a coordinated national approach to tax administration.
The Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, stated that the signing marked a transition from legislative approval to operational enforcement of tax reforms enacted in 2025 and early 2026. He highlighted that the regulations offer a simple and transparent framework for applying presumptive tax, focused on transparency, fairness, clarity, equity, and economic inclusion for Nigerians. The reforms aim to broaden the tax base without raising tax rates, ensuring each individual contributes fairly to the national economy.
Edun mentioned that the regulations were developed in collaboration with the Joint Revenue Board to ensure alignment across federal, state, and local governments. The reforms aim to coordinate tax administrations, deliver results, and impact all Nigerians positively. The minister noted the broader growth objectives of the reforms, with the economic expansion exceeding four percent in the last quarter of 2025, and a target of seven percent GDP growth by 2030 to achieve a one trillion dollars economy.
The implementation of these reforms will be closely monitored to safeguard fairness, with an ombudsman mechanism introduced. Chairman of the National Tax Policy Implementation Committee, Mr Joseph Tegbe, described the signing as a decisive shift from policy intention to practical execution. He emphasized that the reforms are not about imposing new burdens but correcting systemic distortions, restoring order, and replacing arbitrariness with transparency.
Tegbe highlighted that the informal sector employs over 80 percent of Nigeria’s workforce but has historically contributed little to structured public revenue due to systemic weaknesses. He noted that the framework’s complexity and lack of operational realism have been barriers, not the unwillingness of the informal sector to pay taxes.