Abuja, March 4, 2026 (Nduka Chiejina)
The Federal Government of Nigeria has formally banned the collection of taxes and levies at roadside checkpoints and highway roadblocks across the country, in what officials describe as part of sweeping reforms aimed at overhauling the nation’s tax administration system.
The announcement was made on Tuesday in Abuja by Mr. Olusegun Adesokan, Executive Secretary of the Joint Revenue Board, during the signing of the new Presumptive Tax Framework and the implementing guidelines for Nigeria’s updated tax laws.
Roadblocks and Cash Collection Outlawed
Under the new regulations, tax officials are no longer permitted to mount roadblocks or operate checkpoints on highways for the purpose of collecting taxes and levies a practice long criticised by traders, transport unions, and business operators for disrupting movement and encouraging informal and arbitrary charges.
The framework also prohibits the cash collection of taxes nationwide, promoting the adoption of technology-driven payment systems to enhance transparency, accountability, and efficiency in revenue collection across federal, state, and local governments.
Supporting Small and Informal Businesses
The revised tax rules include measures designed to simplify compliance for the informal sector, which accounts for a significant portion of Nigeria’s workforce. Under the new regime, nano and small businesses with an annual turnover of ₦12 million or less are exempt from tax. Other informal enterprises will be subject to a presumptive tax of one per cent of turnover.
Adesokan explained that the reforms aim to shift Nigeria’s tax system away from fragmented and coercive practices toward a more uniform, transparent, and equitable framework that encourages voluntary compliance and integrates more businesses into the formal economy.
Government’s Position
Mr. Wale Edun, Minister of Finance and Coordinating Minister of the Economy, described the signing as a critical step in implementing the tax reforms passed by the National Assembly in 2025, which took effect in January 2026. He emphasised that the objective is not to increase tax rates but to broaden the tax base and ensure consistent and fair treatment across sectors.
Officials further stated that the measures are intended to modernise Nigeria’s tax administration, reduce arbitrary assessments, and lay the foundation for a more inclusive, technology-enabled system that supports economic growth and compliance.
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