The Federal Government on Tuesday formally prohibited the cash tax collection ban and outlawed the mounting of roadblocks for revenue enforcement, as part of new regulations to implement Nigeria’s tax laws across the country.
The announcement 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 on the Implementation of the Tax Laws at the Federal Ministry of Finance.
Adesokan said the framework was designed to end informal and coercive 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 said.
He explained that the regulations would promote transparency and fairness in tax administration, especially within the commerce and informal sectors.
“These regulations are another demonstration of his commitment to taxing prosperity and not poverty,” Adesokan said, referring to the reform agenda of the Federal Government.
According to him, nano and small businesses with an annual turnover of N12m 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 stated.
He added that the framework introduced a one per cent tax rate on turnover for other categories of informal businesses, while encouraging the adoption of technology-driven payment systems under the cash tax collection ban policy.
“It also introduces a tax rate of one per cent of turnover on all other categories of informal businesses,” he said.
Adesokan noted that the guidelines provided a uniform structure for subnational governments in taxing the commerce sector and integrating operators into the formal system through a Tax Identification platform.
“These regulations constitute the framework for taxing the commerce sector,” he said, adding that the alignment of states behind the framework signalled a coordinated national approach.
Speaking at the ceremony, the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, said the signing marked the transition from legislative approval to operational enforcement of 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 regulations as a simple and transparent framework for applying presumptive tax, stressing that they were anchored on “transparency, fairness, clarity, indeed, equity, and economic inclusion for Nigerians.”
“Our aim is to ensure consistency, prevent arbitrary assessments… and to protect small businesses while ensuring the continuous growth of the Nigerian economy,” the minister said.
Edun maintained that the reforms were 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.
He said the regulations were developed in collaboration with the Joint Revenue Board to ensure coordination across federal, state and local governments.
“Our role is to ensure that tax administrations are coordinated, not fragmented, and deliver results and impact to all Nigerians,” he stated.
The minister linked the reforms to the government’s growth targets, noting that economic expansion exceeded four per cent in the last quarter of 2025 but required 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, 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 closing remarks, the Chairman of the National Tax Policy Implementation Committee, Mr Joseph Tegbe, said the signing represented a shift from policy intent to 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 were aimed at correcting distortions in the system.
“It’s not about imposing new volumes but restoring order where there has been fragmentation and replacing arbitrariness with transparency,” he said.
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Tegbe observed that the informal sector employs more than 80 per cent of Nigeria’s workforce but contributes little to structured public revenue due to weaknesses in the system.
“The informal sector… employs more than 80 per cent of the workforce… yet its contribution to structured public revenue has been disproportionately low, not because they are unwilling to pay but because our framework was either too complex or did not reflect operational realities,” he said.
He added that sustainable development required improved revenue mobilisation and that the committee would work with tax authorities to ensure disciplined implementation of the cash tax collection ban framework.
In June 2025, President Bola Tinubu signed four major tax reform bills into law, including the Nigeria Tax Act and related statutes, to modernise the country’s tax system.