By our Correspondent
The Federal Government has advanced its tax reform agenda with the introduction of new Presumptive Tax Regulations, designed to formalize Nigeria’s large informal sector and enhance transparency in revenue administration.
According to a statement by Joseph Tegbe, Chairman of the National Tax Policy Implementation Committee (NTPIC), the regulations were signed earlier this week by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, in collaboration with the Joint Revenue Board. This move signals a shift from policy planning to active implementation within the country’s broader tax reform programme. Tegbe reaffirmed.
The NTPIC chairman said the new framework aims to eliminate the informal, coercive, and fragmented tax practices that have been prevalent, particularly at the subnational level. It explicitly prohibits tax authorities from collecting cash payments and bans the use of roadblocks for tax enforcement—measures intended to strengthen accountability and curtail revenue leakage.
Tegbe also clarified that the policy offers relief for nano and small businesses, specifically exempting enterprises with an annual turnover of ₦12 million or less from the presumptive tax regime. Instead, eligible informal businesses will be subject to a 1 per cent turnover-based tax, administered through technology-driven payment systems to ensure efficiency and transparency.
Also, the regulations are designed to simplify taxation for the informal sector while gradually integrating small businesses into the formal tax system. With Nigeria’s informal sector comprising over 80 per cent of the country’s workforce, this initiative is a critical component of the government’s strategy to broaden the tax base without overburdening small enterprises.
Tegbe reaffirmed that the NTPIC will continue working closely with tax authorities at federal, state, and local government levels to ensure a coordinated rollout and consistent implementation of the new framework. He emphasized that expanding the tax base in a fair and transparent manner is essential to strengthening government revenue and building a more inclusive and resilient economy. (GSF)
