The federal government has taken steps to overhal the informal tax system with the unveiling of a set of regulations to bring millions of informal businesses into the tax net.
The new regulation prohibit cash collections and roadside enforcement by subnational authorities in what officials described as a decisive shift from legislation to implementation.
Minister of finance and coordinating minister of the economy, Wale Edun, said the new presumptive tax regulations mark the operational phase of tax reforms whose enabling acts took effect between mid-2025 and January 2026.
He said the move is central to President Bola Tinubu’s growth agenda, arguing that a simplified framework would expand the tax base without increasing rates.
Edun said the regulations, issued under powers vested in his office on the advice of the Joint Revenue Board, are designed to ensure consistency across federal, state and local governments, prevent arbitrary assessments and protect small businesses.
According to Edun, by formalising entry into the tax system, the government aims to give small firms a structured pathway into the formal economy, improving access to growth opportunities while ensuring each taxpayer bears a “rightful contribution.”
He added that implementation would be closely monitored, with an ombudsman in place to safeguard fairness, as the government pivots from economic stabilisation to growth.
