The Federal Government has outlawed the use of roadblocks for collecting taxes and levies across the country and introduced a new Presumptive Tax Framework (PTF) aimed at formalising millions of small and informal businesses.
The initiative is designed to simplify tax compliance for traders, artisans and micro enterprises by creating a more straightforward payment system.
Executive Secretary of the Joint Revenue Board (JRB), Olusegun Adesokan, announced the measures during the signing of the PTF at the Ministry of Finance in Abuja on Tuesday, March 3. He stated that the framework expressly bans tax officials from mounting roadblocks to collect levies — a long-criticised practice among businesses and transport operators.
Adesokan described the reform as a significant move toward building a fairer tax system. Under the new arrangement, businesses with an annual turnover of up to N50 million will be exempt from paying tax.
“It ensures that our nano and small businesses with an annual turnover of 50 million naira are exempted from tax,” he said, noting that the exemption would allow small entrepreneurs to reinvest and grow before joining the tax net.
For informal businesses that exceed the exemption threshold, the framework introduces a simplified turnover-based tax system. It also prohibits cash payments for taxes, mandating the use of technology-driven payment channels and banning all forms of cash collection by tax authorities.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said the PTF forms part of the broader tax reform agenda of the Bola Ahmed Tinubu administration. He explained that the reforms are intended to expand the country’s tax base while shielding small businesses from excessive burdens.
According to Edun, the new system is built on clear indicators such as business category and turnover rather than complex accounting requirements, making compliance easier for operators in the informal sector.
“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 added that the government’s fiscal strategy focuses on broadening the tax base instead of raising tax rates, emphasising that inclusion is key to long-term sustainability.
Edun noted that the regulations will also ensure consistency nationwide, offering clearer guidelines to tax authorities and protecting taxpayers from arbitrary assessments.
Highlighting the importance of small and micro enterprises to Nigeria’s economy, he said the framework aims to reduce compliance costs and create a structured pathway into the formal sector.
“A stronger, more diversified revenue base enhances the government’s capacity to fund infrastructure, social investment, security and economic growth,” the minister added.
