The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has signed the Presumptive Tax Regulations framework in his office. This action is seen as a step forward in Nigeria’s ongoing tax reforms.
Edun described the new framework as “simple, clear and fair, with a focus on economic inclusion,” and said it aims to protect small businesses while broadening the tax base without increasing rates. He stated that these regulations mark a transition “from regular to structured implementation of the tax reforms,” providing greater transparency, fairness, clarity, consistency, and an equitable approach to administering presumptive taxes, especially for those in the informal sector.
“These Regulations according to him are anchored on Mr. President’s commitment to ‘taxing prosperity, not poverty,’” Edun said.
Key features of the Presumptive Tax Regulations include exempting nano and small businesses with annual turnovers of ₦12 million or less from taxation. Other eligible informal sector businesses will be subject to a 1% turnover tax. The regulations also seek to end cash-based tax collection by promoting technology-driven payment systems and prohibit roadblocks or other informal methods of enforcement. Additionally, they aim to help informal businesses join the formal economy through digital platforms.
Edun noted that Nigeria’s economy grew by more than 4% in the last quarter of 2025. He added that there is a government target for 7% GDP growth in the near term as part of efforts toward achieving President Tinubu’s goal of reaching a $1 trillion economy by 2030.
He highlighted that formalizing the informal sector is crucial for inclusive and sustainable economic growth. “We must grow the Nigerian economy across all sectors , micro, small, medium and large enterprises; domestic and foreign investors; and Nigerians in the diaspora. A fair and predictable tax system is critical to that growth,” he said.
Edun also recognized the Joint Tax Board’s role in ensuring coordinated implementation at both federal and sub-national levels. He assured stakeholders that enforcement would be monitored for fairness nationwide and reiterated that protecting small businesses remains central under this new regime.
Olusegun Adesokun, Executive Secretary of the Joint Revenue Board, commented that these rules are designed to end coercive practices and fragmented approaches at local levels: “guildlines bans all forms of cash collection by tax authorities”. He also noted that setting up roadblocks for collecting taxes is now prohibited.
Joseph Tegbe, Chairman of the National Tax Policy Implementation Committee (NTPIC), remarked: “with the signing of these Presumptive Tax Guidelines, we have moved from legal provision to operational reality.” Tegbe added that President Bola Ahmed Tinubu’s reform effort focuses on restoring order where fragmentation existed before—replacing arbitrariness with transparency—and creating a fairer system reflecting Nigeria’s informal economy realities.
Tegbe further stated that NTPIC will work closely with authorities for disciplined rollout and operational consistency while guarding against arbitrary assessments.
The signing event was attended by senior officials including chairmen from various tax authorities as well as members from stakeholder groups.