FG bans cash tax collection, outlaws roadblocks under new tax rules

The Federal Government has prohibited the collection of taxes in cash and barred revenue agencies from setting up roadblocks for enforcement, introducing new measures to standardise tax administration across the country.

The Executive Secretary of the Joint Revenue Board, Mr. Olusegun Adesokan, announced the development on Tuesday in Abuja during the formal signing of the Presumptive Tax Regulations and Guidelines for the Implementation of the Tax Laws.

The new framework is part of broader tax reforms being rolled out nationwide.

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What They Are Saying

Adesokan said the regulations directly prohibit informal collection methods and enforcement tactics previously used in some jurisdictions.

• “It bans all forms of cash collection by tax authorities. It also bans the mounting of roadblocks for the collection of taxes,” he said.

He explained that the measures are intended to promote transparency and fairness in tax administration, particularly within the commerce and informal sectors.

On small businesses, he clarified that those within a defined turnover threshold would not fall under the tax net.

• “Our nano and small businesses with an annual turnover of N12 million and below are exempted from tax,” Adesokan said.

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, described the signing as the beginning of implementation following legislative approval of the reforms.

• “With the signing of these regulations, we are transitioning from regulation to structured implementation of the tax reforms,” Edun said.

Chairman of the National Tax Policy Implementation Committee, Joseph Tegbe, said the move signals a shift from policy planning to execution.

• “It is not about imposing new volumes but restoring order where there has been fragmentation and replacing arbitrariness with transparency,” the chairman said.

**Backstory **

In June 2025, President Bola Tinubu signed four tax reform bills into law. The four bills;  the Nigeria Tax Bill, the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill, are aimed at overhauling revenue administration and improving coordination across all tiers of government.

Implementation of the new tax reforms began on January 1, 2026.

The informal sector accounts for more than 80 per cent of employment nationwide but has historically contributed minimally to structured tax revenue due to systemic inefficiencies and compliance gaps.

The newly signed regulations are intended to move tax enforcement away from discretionary practices toward a uniform national framework focused on transparency, digital compliance, and broader inclusion in the tax net.

What You Should Know

The regulations introduce a presumptive tax structure aimed at simplifying compliance for small and informal businesses.

Under the new rules:

• Tax authorities are barred from collecting revenue in cash.
• Roadblocks cannot be used for tax enforcement.
• Businesses with annual turnover of N12 million and below are exempt.
• Other informal businesses will pay one per cent of turnover.

Officials said the framework also promotes the use of technology-driven payment systems and seeks to align tax administration across federal, state and local governments.

An ombudsman mechanism has also been introduced to monitor implementation and address complaints.

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