The Federal Government of Nigeria has banned the use of roadblocks for the collection of taxes and levies nationwide as part of ongoing tax reforms.

The government also introduced a new Presumptive Tax Framework (PTF) aimed at bringing millions of small and informal businesses into the formal economy and simplifying tax compliance.

The announcement was made in Abuja by the Executive Secretary of the Joint Revenue Board, Olusegun Adesokan, during the signing ceremony at the Federal Ministry of Finance Nigeria.

Adesokan said the framework prohibits tax officials from mounting roadblocks and collecting taxes in cash, encouraging the use of digital payment platforms.

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, described the PTF as part of President Bola Ahmed Tinubu’s tax reform agenda to expand the tax base without increasing rates.

He said the system would rely on simple indicators such as business category and turnover, reduce compliance costs, and protect taxpayers from arbitrary assessments.

Under the new framework, businesses with an annual turnover of up to ₦50 million will be exempted from tax, while other informal enterprises will pay a simplified rate based on turnover.

The government said the reforms would improve transparency, reduce harassment of taxpayers, and strengthen non-oil revenue to support infrastructure, security and social programmes.