The Federal Government has outlawed the mounting of roadblocks for the collection of taxes and levies across the country, describing the practice as disruptive and inconsistent with ongoing reforms aimed at improving the business environment.
At the same event, officials unveiled a new Presumptive Tax Framework (PTF) designed to bring millions of small and informal businesses into the formal economy through a simplified and predictable tax system.
Executive Secretary of the Joint Revenue Board, Olusegun Adesokan, said the new framework expressly prohibits tax officials from setting up checkpoints on highways to demand payments from traders, transporters and other operators. He added that the policy also bans all forms of cash collection by tax authorities, encouraging the use of technology-driven payment channels instead.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, described the initiative as part of the broader tax reform programme of the Bola Ahmed Tinubu administration. According to him, the goal is to widen the tax base without increasing existing tax rates, while shielding small businesses from undue pressure.
Edun explained that the presumptive tax system would rely on clear indicators such as business category and turnover, rather than complex accounting requirements. He stressed that the intention is to make compliance simple and fair, especially for traders, artisans and micro enterprises that often struggle with formal bookkeeping.
Under the new arrangement, businesses with an annual turnover of up to N50 million will be exempted from paying tax. Adesokan said this exemption is meant to allow nano and small enterprises retain capital for growth before transitioning fully into the tax net. For businesses above the threshold, a simplified turnover-based rate will apply.
Officials said the framework was developed in collaboration with federal and state tax authorities to ensure nationwide consistency and prevent arbitrary assessments. They added that expanding the tax base through inclusion, rather than higher rates, would strengthen government revenue and enhance its capacity to fund infrastructure, security and social development programmes.
