The Federal Government has banned cash collection of taxes and the mounting of roadblocks for revenue enforcement as part of new regulations to implement Nigeria’s tax laws nationwide.
The Executive Secretary of the Joint Revenue Board, Mr Olusegun Adesokan, made the announcement in Abuja during the signing of the Presumptive Tax Regulations and Guidelines at the Federal Ministry of Finance.
The regulations are designed to end informal, coercive, and fragmented tax practices at the subnational level, promote transparency, and ensure equity in tax administration.
Under the framework, nano and small businesses with annual turnover of N12 million and below are exempted, while other informal businesses will pay one per cent of turnover. Technology-driven payment systems are encouraged.
The guidelines provide a uniform structure for subnational governments in taxing the commerce sector and integrating operators into the formal system through a Tax Identification platform.
The Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, said the signing marks the transition from legislative approval to operational enforcement of tax reforms enacted in 2025 and early 2026.
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He said the reforms aim to broaden the tax base, protect small businesses, and ensure economic growth without raising tax rates.
The Chairman of the National Tax Policy Implementation Committee, Mr Joseph Tegbe, described the regulations as a shift from policy intention to practical execution.
He noted that the informal sector employs more than 80 per cent of Nigeria’s workforce but has historically contributed little to structured public revenue due to systemic weaknesses.
The committee said it will work with tax authorities to ensure disciplined and transparent rollout of the new framework.
The signing follows the enactment of four tax reform bills in June 2025, including the Nigeria Tax Act, aimed at modernising the country’s tax system.