….Over 80% Of Workforce In Informal Sector Now Targeted Fairly
…States To Follow Uniform Framework For Commerce Sector Taxation
Daud Olatunji
The Federal Government has officially prohibited the collection of taxes in cash and banned roadblocks by tax authorities nationwide, in a move aimed at modernising Nigeria’s tax administration and enforcing transparency.
The Executive Secretary of the Joint Revenue Board (JRB), Mr Olusegun Adesokan, announced the new regulations during the signing of the Presumptive Tax Regulations and Guidelines on the Implementation of Tax Laws in Abuja on Tuesday.
Adesokan explained that the reforms were designed to end informal, coercive, and fragmented tax practices at the federal, state, and local levels.
“It bans all forms of cash collection by tax authorities. It also bans the mounting of roadblocks for tax enforcement,” he said.
The regulations exempt nano and small businesses with annual turnovers of N12 million and below from tax, while other informal sector businesses are required to pay a one per cent tax on turnover.
The framework also encourages the adoption of digital payment systems for tax collection.
“These regulations are another demonstration of our commitment to taxing prosperity, not poverty,” Adesokan said, adding that the reforms provide a uniform structure for subnational governments in taxing the commerce sector and integrating operators into the formal system through a Tax Identification platform.
Finance and Coordinating Minister, Mr Wale Edun, described the signing as a critical transition from legislative approval to practical enforcement of the tax reforms enacted in 2025 and early 2026.
“With these regulations, we are moving from policy to structured implementation. The framework is simple, transparent, and anchored on fairness, clarity, and economic inclusion,” he said.
Edun emphasised that the reforms were not aimed at raising taxes but at broadening the tax base and ensuring equitable contribution from all Nigerians.
“Our goal is to expand the tax base without imposing additional burdens,” he said.
The Chairman of the National Tax Policy Implementation Committee, Mr Joseph Tegbe, said the regulations mark a decisive shift from policy intention to execution.
“The informal sector employs more than 80 per cent of Nigeria’s workforce yet contributes little to structured public revenue, not due to unwillingness, but because the framework was previously too complex.
“This reform restores order, replaces arbitrariness with transparency, and ensures sustainable revenue mobilisation,” Tegbe said.
Officials said the implementation would be closely monitored, with an ombudsman mechanism established to safeguard fairness and accountability.
The reforms are expected to integrate informal businesses into the formal economy, enhance compliance, and drive sustainable economic growth as Nigeria targets a GDP growth of seven per cent, in line with the government’s 2030 economic vision.
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