By Ghazali Ibrahim
The Federal Government of Nigeria has rolled out a fresh tax policy aimed at overhauling how taxes are collected from small and informal businesses across the country, BlackBox Nigeria has learnt from the ministry of Finance’s X account on Wednesday.
It also outlawed the use of checkpoints and roadside levies for enforcement.
Announced on March 3, 2026, in Abuja, the new Presumptive Tax Regulations and Implementation Guidelines were unveiled by Mr Olusegun Adesokan, Executive Secretary of the Joint Revenue Board (JRB).
The framework is designed to formalise Nigeria’s informal economy and improve transparency and fairness in tax administration nationwide.
Under the policy, nano and small businesses with an annual turnover of ₦12 million or less are exempt from tax, while other informal sector operators will pay a one-per-cent tax on turnover under a simplified regime.
Officials say the regime is meant to ease compliance requirements and encourage small business growth.
A key part of the reforms is a ban on cash tax collection and the mounting of roadblocks by revenue officials, a move that directly targets long-standing, informal enforcement practices criticised by traders, artisans and transport operators who say such checkpoints were arbitrary and stifled business activity.
Minister of Finance and Coordinating Minister of the Economy Wale Edun said the signing marked the transition from legislation to practical implementation of broader tax reforms that were approved in 2025.
He emphasised that the objective is to expand the tax base in a structured way without increasing tax rates, promote equity, and attract more informal sector operators into the formal economy.
Officials also highlighted that the new policy encourages the use of technology-driven payment platforms and integrates tax administration systems across federal, state and local governments to ensure a uniform approach.
An ombudsman mechanism will monitor implementation and safeguard against unfair practices.
Supporters of the reforms say they could help strengthen non-oil revenue, formalise millions of business owners, and reduce corruption tied to informal revenue collection.
