FG bans roadblocks, cash tax collection nationwide

The Federal Government has outlawed the mounting of roadblocks and the cash collection of taxes as part of new regulations to enforce Nigeria’s recently enacted tax laws across the country.

The Executive Secretary of the Joint Revenue Board, Mr Olusegun Adesokan, announced this in Abuja during the signing of the Presumptive Tax Regulations and Implementation Guidelines. He explained that the new measures are aimed at eliminating informal, coercive and fragmented tax practices, particularly at the subnational level.

According to him, all forms of cash tax collection by authorities are now prohibited, alongside the use of roadblocks for revenue enforcement.

Adesokan said the regulations are designed to promote transparency, fairness and equity in tax administration, especially within the commerce and informal sectors. He noted that nano and small businesses with an annual turnover of ₦12 million and below would be exempted under the presumptive tax regime.

For other informal businesses, the framework introduces a one per cent tax on turnover and encourages the adoption of technology-driven payment systems. He added that the guidelines provide a uniform structure for states to tax the commerce sector and integrate operators into the formal system through a Tax Identification platform, signalling a coordinated national approach.

The Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, described the signing as a move from legislative approval to full implementation of the tax reforms passed in 2025 and early 2026. He said the framework ensures consistency, prevents arbitrary assessments, protects small businesses and supports economic growth.

Edun stressed that the reforms are not intended to increase tax rates but to broaden the tax base in a structured manner, ensuring every citizen contributes fairly. He added that the regulations were developed in collaboration with the Joint Revenue Board to guarantee alignment across federal, state and local governments.

The Chairman of the National Tax Policy Implementation Committee, Mr Joseph Tegbe, said the reforms mark a shift from policy discussions to practical execution. He explained that the initiative seeks to correct systemic distortions, restore order and replace arbitrary practices with transparency.

Tegbe observed that although the informal sector accounts for more than 80 per cent of Nigeria’s workforce, its contribution to structured public revenue has remained low due to complex systems and operational gaps. He assured that the committee would work closely with tax authorities to ensure a disciplined and transparent rollout of the new framework.