The Federal Government of Nigeria on Tuesday formally prohibited cash collection of taxes and banned the mounting of roadblocks for revenue enforcement.
The move forms part of fresh regulations to implement Nigeria’s new tax laws nationwide.
The disclosure was made in Abuja by the Executive Secretary of the Joint Revenue Board, Mr Olusegun Adesokan, during the signing of the Presumptive Tax Regulations and Guidelines at the Federal Ministry of Finance.
Adesokan said the new framework was designed to end informal, coercive and fragmented tax practices, particularly at the subnational level.
“It bans all forms of cash collection by tax authorities. It also bans the mounting of roadblocks for the collection of taxes,” he stated.
According to him, nano and small businesses with an annual turnover of N12 million and below would be exempted under the presumptive tax regime.
“Our nano and small businesses with an annual turnover of N12m and below are exempted from tax,” he said.
He added that the framework introduces a one per cent tax rate on turnover for other categories of informal businesses. The regulations also encourage the use of technology-driven payment systems.
Adesokan noted that the guidelines provide a uniform structure for subnational governments in taxing the commerce sector. He said the framework would integrate operators into the formal system through a Tax Identification platform.
“These regulations constitute the framework for taxing the commerce sector,” he said, describing the alignment of states as a coordinated national approach.
Speaking at the ceremony, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said the signing marked a transition from legislative approval to operational enforcement of the tax reforms enacted in 2025 and early 2026.
“With the signing of these regulations, we are transitioning from regulation to structured implementation of the tax reforms,” Edun said.
He described the framework as simple and transparent, anchored on fairness, clarity and economic inclusion.
“Our aim is to ensure consistency, prevent arbitrary assessments and protect small businesses while ensuring the continuous growth of the Nigerian economy,” he stated.
Edun emphasised that the reforms are not intended to raise tax rates but to broaden the tax base in a structured manner.
“We’ll expand the tax base, not raising taxes, but expanding so that each bears his rightful contribution to the common cause,” he said.
The minister linked the reforms to the government’s broader growth agenda. He noted that economic expansion exceeded four per cent in the last quarter of 2025 but requires further acceleration.
“We’re looking at, in the immediate term, to try to get to seven per cent GDP growth on our way to Mr President’s clear-stated target… by 2030, the $1tn economy,” Edun said.
He assured stakeholders that implementation would be closely monitored to safeguard fairness, adding that an ombudsman mechanism had been introduced.
“Implementation will be monitored carefully. Fairness in practice… there’s an ombudsman to keep an eye on fair implementation of the tax laws,” he said.
In his remarks, Chairman of the National Tax Policy Implementation Committee, Mr Joseph Tegbe, described the signing as a decisive shift from policy intention to practical execution.
“With the signing of the presumptive tax guidelines, we have moved from legal provisions to operational reality,” Tegbe said.
He stressed that the reforms are aimed at correcting distortions rather than imposing new burdens.
“It’s not about imposing new volumes but restoring order where there has been fragmentation and replacing arbitrariness with transparency,” he stated.
Tegbe observed that the informal sector employs more than 80 per cent of Nigeria’s workforce. However, its contribution to structured public revenue has remained low due to systemic weaknesses.
He added that sustainable development requires sustainable revenue mobilisation and pledged disciplined and transparent rollout of the framework.
The reforms follow the signing of four sweeping tax reform bills into law in June 2025 by Bola Tinubu, including the Nigeria Tax Act and related statutes aimed at modernising the country’s tax system.
