The Federal Government has banned the mounting of roadblocks for the collection of taxes and levies nationwide as part of a sweeping reform of the country’s tax administration system.
It also signed a new Presumptive Tax Framework (PTF) aimed at bringing millions of small and informal businesses into the formal economy through simplified tax processes.
Executive Secretary of the Joint Revenue Board (JRB), Olusegun Adesokan, announced the measures during the signing ceremony held at the Ministry of Finance in Abuja.
Adesokan said the new framework expressly prohibits the use of roadblocks by tax officials to collect levies — a long-criticised practice among businesses and transport operators.
“It also bans the mounting of roadblocks for the collection of taxes,” he said.
He further disclosed that the framework outlaws cash collection by tax authorities and promotes the use of technology-driven payment systems to ensure transparency and accountability.
“Apart from encouraging the use of technology for payment of taxes and cash collection, it bans all forms of cash collection by tax authorities,” Adesokan added.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, described the PTF as a key component of the tax reform programme under the administration of Bola Ahmed Tinubu.
Edun said the framework is designed to expand the nation’s tax base while protecting small businesses from excessive burden.
According to him, the presumptive tax system will rely on clear indicators such as business category and turnover levels rather than complex accounting requirements.
“The objective of presumptive taxation is not to overburden small businesses, but to provide a fair, simple and predictable framework for tax compliance,” he said.
He stressed that the government’s fiscal strategy is anchored on widening the tax net instead of increasing 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 seeks to reduce compliance costs while creating a structured pathway for them to transition into the formal sector.
He added that the regulations would provide clarity for tax authorities across the country and protect taxpayers from arbitrary assessments.
“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.
Edun also said that strengthening non-oil revenue through a broader tax base would enhance the government’s capacity to fund infrastructure, security, social investment and economic growth.
The minister explained that the regulations were developed in collaboration with the JRB 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 President Tinubu’s commitment to ensuring that the tax system supports economic growth rather than placing pressure on struggling citizens.
“This revolution is another demonstration of President Bola Ahmed Tinubu’s commitment to taxing prosperity and not poverty,” he said.
Adesokan disclosed that businesses with an annual turnover of up to N50 million would 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,” he said.
He explained that the exemption would allow small entrepreneurs to retain capital for growth before eventually entering the tax system, while other informal businesses above the threshold would be subject to a simplified turnover-based tax rate.
