The Federal Government has unveiled a new tax framework aimed at bringing small businesses into the formal tax system.
The policy focuses on traders, artisans, and other micro-enterprises across the country.
It is designed to simplify how taxes are paid and to stop abusive collection practices.
The announcement was made through Nigeria’s Finance Ministry on Wednesday.
The new policy is called the Presumptive Tax Framework.
According to the government, the framework will replace complex tax procedures with a simpler and more predictable system for small business owners.
Officials said the move will improve compliance while protecting vulnerable entrepreneurs from harassment.
Speaking on the policy, the Executive Secretary of the Joint Revenue Board, Olusegun Adesokan, said the framework clearly outlaws the use of force in tax collection.
“It also bans the mounting of roadblocks for the collection of taxes.”
He explained that tax officials will no longer be allowed to stop traders on highways or in markets to demand levies.
Instead, collections will follow structured and lawful channels.
The Minister of Finance, Wale Edun, said the new tax regime is meant to support growth among small businesses rather than punish them.
“The objective of presumptive taxation is not to overburden small businesses, but to provide a fair, simple, and predictable framework for tax compliance.
“Our fiscal strategy is anchored on expanding the tax base rather than increasing tax rates. Inclusion drives sustainability.”
He made the remarks at the official launch of the scheme in Abuja on Tuesday.
Government officials added that the framework will help reduce multiple taxation and curb illegal levies imposed by local revenue agents.
They also noted that small businesses form the backbone of Nigeria’s informal economy and must be encouraged, not intimidated.
The initiative is part of a wider reform to boost national revenue without raising tax rates.
Authorities believe more citizens paying small, regular taxes will strengthen long-term economic stability.