FG Bans Roadside Tax Collection In New Informal Sector Reform
By OBI DAVIES
THE Federal Government has introduced a new set of regulations aimed at reforming Nigeria’s informal tax system, banning roadside tax collections and cash-based enforcement while seeking to bring millions of informal businesses into the tax net.
The reforms were announced by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, who described the new presumptive tax regulations as the operational phase of broader tax reforms introduced between mid-2025 and January 2026.
According to Edun, the regulations prohibit cash collections and roadside enforcement by subnational authorities, a move designed to curb arbitrary taxation practices and improve transparency in revenue administration.
He said the policy forms part of the economic growth agenda of Bola Tinubu’s administration, stressing that the simplified tax framework would help widen the tax base without raising tax rates.
The minister explained that the regulations were issued under powers vested in his office following recommendations from the Joint Revenue Board. The goal, he said, is to create uniformity in tax administration across federal, state and local governments.
Edun noted that the initiative would also protect small businesses from arbitrary assessments while giving them a structured pathway into the formal economy.
“By formalising entry into the tax system, we are ensuring that small businesses can grow within a predictable framework while contributing their fair share to national development,” he said.
The government also announced that an ombudsman would be established to oversee implementation and ensure fairness in the tax process.
Officials say the reform signals a shift from policy design to active enforcement as the government moves from economic stabilisation toward a growth-focused fiscal strategy.
