Federal Government Bans Collection of Taxes and Levies on Highways

The Federal Government has banned the use of roadblocks for the collection of taxes and levies across the country as part of a broader effort to reform Nigeria’s tax system and reduce pressure on small businesses.

The government also signed a new Presumptive Tax Framework aimed at bringing millions of small and informal businesses into the formal economy through a simpler and more predictable tax process.

The framework is designed to make tax payment easier for traders, artisans, and other micro businesses by reducing the need for complex accounting records.

The Executive Secretary of the Joint Revenue Board, Olusegun Adesokan, announced the new measures during the signing of the framework at the Ministry of Finance in Abuja.

He said the new policy clearly prohibits tax officials from mounting roadblocks to collect levies, a practice that has drawn criticism for years from transport operators and business owners.

According to him, the framework also ends the collection of taxes through physical road checkpoints.

Minister of Finance and Coordinating Minister of the Economy, Wale Edun, described the new framework as part of the tax reform programme of the Bola Tinubu administration. He said the goal is to expand the country’s tax base while protecting small businesses from unnecessary burden.

Edun explained that the new system is meant to provide a fair and simple method for small businesses in the informal sector to meet their tax obligations without going through difficult accounting procedures.

He said the system will depend on clear factors such as the type of business and turnover level, rather than complicated financial statements.

According to the minister, presumptive taxation is not meant to place more pressure on small businesses, but to create a system that is fair, simple, and easy to understand.

He added that the new framework will help the government increase non-oil revenue by bringing more businesses into the tax net instead of raising current tax rates.

Edun said the government’s fiscal plan is focused on widening the tax base rather than increasing taxes, adding that inclusion is important for long-term sustainability.

He noted that micro and small businesses remain a key part of Nigeria’s economy and said the framework would lower compliance costs while also creating a clear path for them to join the formal sector.

The minister also said the regulations would help create uniform tax rules across the country and protect taxpayers from unfair or random tax assessments.

According to him, the new system will be transparent, based on rules, and applied consistently nationwide.

Edun further stated that a stronger and broader revenue base would improve the government’s ability to invest in infrastructure, security, social programmes, and economic development.

He said the regulations were developed in collaboration with the Joint Revenue Board to ensure proper coordination between federal and state tax authorities.

Earlier, Adesokan described the framework as a major step toward making the tax system fairer for ordinary Nigerians.

He said the reform reflects the commitment of the Tinubu administration to build a tax system that supports growth instead of placing extra pressure on struggling citizens.

According to Adesokan, businesses with an annual turnover of up to N50 million will be exempt from tax under the new arrangement.

He said this exemption would allow nano and small businesses to keep more of their capital, grow more easily, and strengthen their operations before entering the tax system fully.

For informal businesses that fall outside the exemption threshold, he said the framework provides a simplified tax rate based on turnover.

Adesokan also said the framework bans all forms of cash collection by tax authorities.

According to him, tax payments will now be made through approved channels, with greater use of technology to improve transparency and reduce abuse.