Tax Laws: Nigerian Government releases new frameworks on ‘informal cash tax collection’

*Olusegun Adesokan, Executive Secretary of the Joint Revenue Board, explains the new tax collection framework is designed to end ‘informal, coercive and fragmented tax practices’, particularly at the subnational level across Nigeria

Isola Moses | ConsumerConnect

The Federal Government has prohibited cash collection of taxes and banned the mounting of roadblocks for revenue enforcement, as part of fresh regulations to implement Nigeria’s new tax laws nationwide.

ConsumerConnect reports Olusegun Adesokan, Executive Secretary of the Joint Revenue Board (JRB) disclosed this development Tuesday, March 3, 2026, during the signing of the Presumptive Tax Regulations and Guidelines on the Implementation of the Tax Laws, in Abuja, FCT.

Adesokan said the new framework was designed to end informal, coercive and fragmented tax practices, particularly at the subnational level in the West African country.

The Executive Secretary also stated: “It bans all forms of cash collection by tax authorities.

“It also bans the mounting of roadblocks for the collection of taxes.”

He explained the regulations would entrench transparency and equity in tax administration, especially within the commerce and informal sectors of the Nigerian economy.

Adesokan averred: “These regulations are another demonstration of his commitment to taxing prosperity and not poverty.”

According to him, nano and small businesses with an annual turnover of N12 million below would be exempted under the presumptive tax regime.

The Executive Secretary of JRB said: “Our nano and small businesses with an annual turnover of N12 million and below are exempted from tax.”

The framework, he stated, introduced one percent tax rate on turnover for other categories of informal businesses, while encouraging the use of technology-driven payment systems.

Adesokan further noted: “It also introduces a tax rate of one per cent of turnover on all other categories of informal businesses.”

The JTB Chief explained the guidelines provided a uniform structure for subnational governments in taxing the commerce sector and integrating operators into the formal system through a Tax Identification platform.

Adesokan stated: “These regulations constitute the framework for taxing the commerce sector.

“The alignment of states behind the framework signalled a coordinated national approach.”

Finance Minister speaks on structured implementation of tax reforms

Speaking on the development, Mr. Wale Edun, Honourable Minister for Finance and Coordinating Minister of the Economy, said that the signing marked a transition from legislative approval to operational enforcement of the tax reforms enacted 2025 and early 2026.

Edun said: “With the signing of these regulations, we are transitioning from regulation to structured implementation of the tax reforms.”

The Minister also affirmed that the regulations is a simple and transparent framework for applying presumptive tax, anchored on transparency, fairness, clarity, indeed, equity, and economic inclusion for Nigerians.

He further said: “Our aim is to ensure consistency, prevent arbitrary assessments and to protect small businesses while ensuring the continuous growth of the Nigerian economy.”

The reforms are not intended to raise tax rates, but to broaden the tax base in a structured manner, stated he.

The Minister for Finance said: “We will expand the tax base, not raising taxes, but expanding so that each bears his rightful contribution to the common cause,” he said.

He explained the regulations are developed in collaboration with the Joint Revenue Board to ensure alignment across federal, state and local governments.

Edun also said: “Our role is to ensure that tax administrations are coordinated, not fragmented, deliver results and impact to all Nigerians.”

The Minister said that the reforms bring broader growth objectives, adding that the economic expansion had exceeded four percent in the last quarter of 2025 but required further acceleration.

The Minister added: “We are trying to get to seven percent GDP growth, the President’s said the target by 2030 is one trillion dollars economy.”

In his remarks on the occasion,

Mr Joseph Tegbe, Chairman of the National Tax Policy Implementation Committee, said that the signing was a decisive shift from policy intention to practical execution.

Tegbe stated that the reforms were not about imposing new burdens but correcting distortions in the system.

The Chairman also said: “It is not about imposing new volumes but restoring order where there has been fragmentation and replacing arbitrariness with transparency.”

The informal sector employs over 80 percent of Nigeria’s workforce but has historically contributed little to structured public revenue due to systemic weaknesses, said he.

Tegbe explained: “The informal sector employs more than 80 percent of the workforce yet its contribution to structured public revenue has been disproportionately low, not because they are unwilling to pay but because our framework was either too complex or did not reflect operational realities.”

According to Tegbe, sustainable development required sustainable revenue mobilisation and that the committee would work with tax authorities to ensure disciplined and transparent rollout of the new framework.

Kindly Share This Story