The Federal Government has formally banned cash collection of taxes and the mounting of roadblocks for revenue enforcement nationwide, as part of fresh regulations to implement Nigeria’s new tax laws.
The Executive Secretary of the Joint Revenue Board, Olusegun Adesokan, announced the development in Abuja during the signing of the Presumptive Tax Regulations at the Federal Ministry of Finance. He said the framework aims to eliminate informal, coercive and fragmented tax practices, particularly at subnational levels.
Under the new rules, nano and small businesses with an annual turnover of ₦12 million and below are exempted from tax, while other informal businesses will pay a one per cent levy on turnover. The regulations also promote technology-driven payment systems and introduce a unified Tax Identification platform to integrate operators into the formal economy.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said the signing marks the transition from legislative approval to structured implementation of tax reforms enacted in 2025 and early 2026. He stressed that the reforms are designed to broaden the tax base, not raise tax rates, while ensuring transparency, fairness and economic inclusion.
Chairman of the National Tax Policy Implementation Committee, Joseph Tegbe, described the move as a shift from policy intention to operational reality, noting that the informal sector, which employs over 80 per cent of Nigeria’s workforce, has historically contributed little to structured revenue due to systemic weaknesses.
The new framework follows sweeping tax reform laws signed in June 2025 by Bola Tinubu, aimed at modernising Nigeria’s tax system and strengthening revenue mobilisation.
