By Grace Jolomi
The Federal Government has prohibited the collection of taxes in cash and banned the use of roadblocks for revenue enforcement, as part of new regulations to strengthen transparency and standardise tax administration across the country.
The announcement was made by the Executive Secretary of the Joint Revenue Board, Mr. Olusegun Adesokan, during the signing of the Presumptive Tax Regulations and Guidelines at the Federal Ministry of Finance in Abuja.
He stated that the new framework seeks to eliminate informal and coercive tax practices, particularly at subnational levels, and promote technology-driven payment systems.
Under the new regulations, nano and small businesses with an annual turnover of N12 million or less are exempted from presumptive tax. Informal sector operators above that threshold will pay a one per cent tax on turnover.
The guidelines also establish a uniform structure for states to tax the commerce sector and integrate operators into a formal tax identification system.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, described the signing as a transition from legislative approval to structured implementation of tax reforms.
He said the measures are designed to protect small businesses, prevent arbitrary assessments, and broaden the tax base without increasing tax rates.
Chairman of the National Tax Policy Implementation Committee, Mr. Joseph Tegbe, noted that the reform is aimed at correcting distortions within the system and replacing fragmented revenue collection practices with transparent and accountable processes.
Policy analysts observe that the move signals a shift toward digital tax administration and improved regulatory oversight, particularly within the informal sector, which accounts for a significant share of Nigeria’s workforce.
