Abuja: The Federal Government has banned cash tax collection and roadblock levies, announcing new nationwide tax regulations to curb extortion and strengthen compliance.
The Executive Secretary (ES) of the Joint Revenue Board, Mr Olusegun Adesokan, made this known during the signing of the Presumptive Tax Regulations and Guidelines on the Implementation of the Tax Laws in Abuja on Tuesday.
He said that the new framework was designed to end informal, coercive and fragmented tax practices, particularly at the subnational level.
“These regulations ban all forms of cash collection and the mounting of roadblocks by tax authorities.”
He also reiterated the ban on roadblocks for tax collection.
Adesokan said that the regulations would entrench transparency and equity in tax administration, especially within the commerce and informal sectors.
He said the regulations show a commitment to taxing prosperity, not poverty.
He said that nano and small businesses with an annual turnover of N12 million or less would be exempt from the presumptive tax regime.
“Our nano and small businesses are exempted from tax if their annual turnover does not exceed N12 million, which is the set threshold for exemption under this policy,” Adesokan said.
The framework encourages technology-driven payments among informal businesses subject to the 1% turnover tax.
He confirmed a 1% turnover tax for other informal businesses.
Adesokan noted that the guidelines provided a uniform structure for subnational governments to tax the commerce sector and to integrate operators into the formal system through a Tax Identification platform.
These regulations constitute the framework for taxing the commerce sector.
He noted that state alignment signals a national approach.
The Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, said that the signing marked a transition from legislative approval to operational enforcement of the tax reforms enacted in 2025 and early 2026.
Edun described the move as a transition to structured tax reform implementation.
He said that the regulations were a simple and transparent framework for applying presumptive tax, anchored in transparency, fairness, clarity, and, indeed, equity and economic inclusion for Nigerians.
The minister said the aim is consistency, protection for small businesses, and economic growth.
Edun said that the reforms were not intended to raise tax rates but to broaden the tax base in a structured manner.
He said tax base expansion, not rate increase, ensures fair contributions.
The minister said the regulations were developed in collaboration with the Joint Revenue Board to ensure alignment among federal, state, and local governments.
Edun said their role is to coordinate tax administration for the national benefit.
The minister said the reforms align with broader growth objectives, adding that the economic expansion had exceeded 4 per cent in the last quarter of 2025 but still required further acceleration.
Edun stated that the target is 7% GDP growth and a trillion-dollar economy by 2030.
He emphasised close monitoring and an ombudsman for fairness.
The Chairman of the National Tax Policy Implementation Committee, Mr Joseph Tegbe, said the signing marked a decisive shift from policy intention to practical implementation.
He said that the reforms were not about imposing new burdens but correcting distortions in the system.
The chairman stressed the need to restore order and transparency amid arbitrary taxation.
Tegbe said 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.
He noted the informal sector’s low revenue contribution results from complex or impractical frameworks, not unwillingness.
In summary, the Federal Government’s new regulations prohibit cash tax collection and roadside levies, align efforts across all levels of government, and simplify tax compliance for small businesses. The reforms are designed to create a transparent, equitable tax system that boosts state revenues while protecting economic growth and inclusion.
