The Federal Government under President Bola Ahmed Tinubu has unveiled a new tax model targeted at integrating small-scale entrepreneurs and informal businesses into Nigeria’s formal revenue system.
The initiative, called the Presumptive Tax Framework, is structured to make tax compliance less complicated for traders, artisans, transport operators and other micro-business owners operating outside the formal corporate space.
Details of the policy were made public in a statement shared on Wednesday through the official X handle of the Federal Ministry of Finance.
Simplified Tax Arrangement
According to the ministry, the framework introduces a simplified tax arrangement tailored specifically for small enterprises that typically struggle with conventional tax procedures.
Rather than navigating complex documentation and multiple levies, eligible operators will now pay taxes through a streamlined process designed to eliminate red tape and promote voluntary compliance.
Executive Secretary of the Joint Revenue Board, Olusegun Adesokan, emphasized that the new system outlaws coercive collection tactics.
He made it clear that tax authorities are prohibited from setting up roadblocks to enforce payments — a practice that has long drawn criticism from traders and transporters.
The reform is widely seen as an effort to address complaints about harassment and arbitrary levies imposed on small business operators along highways and in marketplaces.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, explained that the policy is built around fairness and simplicity.
Widening The Tax Net
Speaking at the official launch in Abuja, he stressed that the objective is not to impose heavier financial obligations on small businesses but to create a transparent and predictable tax environment.
Edun further noted that the government’s broader fiscal agenda prioritises widening the tax net instead of raising existing tax rates.
According to him, expanding participation in the system will strengthen revenue generation in a more sustainable and inclusive manner.
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The Presumptive Tax Framework is expected to reshape how Nigeria engages its vast informal sector, offering a more structured pathway into the national tax system while reducing friction between revenue authorities and small-scale operators.