The Federal Government has banned the mounting of roadblocks for the collection of taxes and levies nationwide.
It also signed a new Presumptive Tax Framework aimed at bringing millions of small and informal businesses into the formal economy by simplifying tax payments for traders, artisans and other micro enterprises.
Executive Secretary of the Joint Revenue Board, Olusegun Adesokan, announced the measures during the signing of the framework at the Ministry of Finance in Abuja. He said the new framework prohibits tax officials from using roadblocks to collect levies, a practice that has drawn criticism from businesses and transport operators.
It also bans the mounting of roadblocks for the collection of taxes,” Adesokan said.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, described the framework as part of the tax reform programme of the Bola Ahmed Tinubu administration to expand the nation’s tax base while protecting small businesses.
Edun said the new tax regime is designed to provide a simple and fair system that allows small businesses in the informal sector to meet their tax obligations without complex accounting requirements. The system, he explained, will rely on clear indicators such as business category and turnover levels rather than detailed financial records.
“The objective of presumptive taxation is not to overburden small businesses, but to provide a fair, simple and predictable framework for tax compliance,” Edun said.
He added that the framework would help widen the tax base and strengthen non-oil revenue without increasing existing tax rates.
“Our fiscal strategy is anchored on expanding the tax base rather than increasing tax rates. Inclusion drives sustainability,” the minister said.
Edun noted that micro and small enterprises form the backbone of Nigeria’s economy and that the framework is intended to reduce compliance costs and create a structured pathway into the formal sector.
“These regulations provide clarity to tax authorities and protect taxpayers from arbitrary assessments. The system will be transparent, rules-based and nationally consistent,” he said.
He added that a stronger and more diversified revenue base would enable the government to invest more in infrastructure, security and social programmes.
The minister said the regulations were developed in collaboration with the Joint Revenue Board to ensure alignment between federal and state tax administrations.
Earlier, Adesokan described the framework as a major step towards making the tax system fairer for ordinary Nigerians. He said the reform reflects the administration’s commitment to ensuring that the tax system supports economic growth.
According to him, businesses with an annual turnover of up to N50 million will be exempted from tax under the new arrangement.
“It ensures that our nano and small businesses with an annual turnover of 50 million naira are exempted from tax,” Adesokan said.
He explained that the exemption would allow small entrepreneurs to retain more capital to run and expand their businesses before entering the tax system. For other informal businesses above the exemption threshold, he said the framework introduces a simplified tax rate based on turnover.
Adesokan also stated that the framework prohibits the use of cash for tax payments and bans all forms of cash collection by tax authorities, encouraging the use of technology for payments.
