The Federal Government has introduced new measures banning the collection of taxes in cash and prohibiting the use of roadblocks for revenue enforcement as part of efforts to implement recently enacted tax reforms across the country.

The Executive Secretary of the Joint Revenue Board, Mr Olusegun Adesokan, announced the directive on Tuesday in Abuja during the signing of the Presumptive Tax Regulations and guidelines for enforcing the updated tax laws.

According to Adesokan, the new rules are aimed at eliminating informal and coercive tax practices, particularly those common at state and local government levels. He explained that tax authorities are no longer permitted to collect payments in cash or mount checkpoints to enforce tax compliance.

He said the framework seeks to promote fairness, accountability and transparency in tax administration, especially within the informal and commercial sectors.

Under the new arrangement, nano and small businesses with an annual turnover of N12 million or less will be exempt from paying taxes under the presumptive regime. For other informal business categories, a flat one per cent levy on turnover has been introduced.

The regulations also encourage the use of digital and technology-driven payment systems to streamline revenue collection.

Adesokan noted that the guidelines provide a uniform structure for subnational governments to tax the commerce sector while integrating operators into the formal system through a Tax Identification platform. He added that the collaboration among states signals a coordinated national approach to tax administration.

The Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, described the signing as the shift from legislative approval to full implementation of tax reforms passed in 2025 and early 2026.

Edun explained that the framework offers a simplified and transparent model for presumptive taxation built on fairness, clarity and inclusion. He stressed that the reforms are not designed to increase tax rates but to broaden the tax base in an orderly manner so that more individuals and businesses contribute appropriately.

He added that the reforms were developed jointly with the Joint Revenue Board to ensure cooperation among federal, state and local tax authorities, preventing fragmented enforcement.

According to the minister, Nigeria’s economy recorded growth above four per cent in the final quarter of 2025, but further expansion is required to meet the government’s target of achieving a seven per cent GDP growth rate and building a one-trillion-dollar economy by 2030.

Edun also disclosed that implementation would be monitored closely to ensure fairness, with an ombudsman mechanism introduced to address complaints.

Chairman of the National Tax Policy Implementation Committee, Mr Joseph Tegbe, described the development as a move from policy formulation to practical execution.

He said the reforms are meant to correct inefficiencies and eliminate arbitrary practices in tax collection.

Tegbe noted 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 systemic challenges rather than unwillingness to pay taxes.

He emphasized that sustainable development depends on consistent and transparent revenue mobilisation, adding that the committee would collaborate with tax authorities nationwide to ensure effective rollout of the new regulations.