NEWS
Nigeria Launches “Presumptive Tax Framework” to Simplify Tax Compliance and Expand Revenue Collection for Small Businesses
In a major move aimed at broadening Nigeria’s tax base, the federal government has unveiled a new tax collection framework designed specifically for small businesses, artisans, and micro-enterprises across the country.
The initiative, officially titled ‘Presumptive Tax Framework’, was disclosed on Wednesday via the Finance Ministry’s official X account. The policy seeks to simplify tax payment processes while ensuring fairness, predictability, and compliance among traders and small-scale entrepreneurs.
Speaking on the objectives of the new system, Mr. Olusegun Adesokan, Executive Secretary of the Joint Revenue Board (JRB), highlighted one of the framework’s key provisions: the prohibition of intrusive collection practices.
“It also bans the mounting of roadblocks for the collection of taxes,” Adesokan emphasized, signaling a clear shift from outdated, enforcement-heavy tax methods.
Finance Minister Wale Edun further explained the rationale behind the presumptive tax regime during its official inauguration on Tuesday in Abuja.
“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,” the minister said.
Officials noted that the framework is part of a broader effort to formalize informal businesses, increase government revenue without imposing additional financial strain, and foster a culture of voluntary compliance among small-scale traders.
Economists and industry stakeholders have largely welcomed the move, describing it as a potential game-changer for Nigeria’s micro and small business sector, which has historically been underrepresented in tax records.
By eliminating unnecessary hurdles such as roadblocks and offering a transparent system, the government hopes to create an enabling environment where small enterprises can thrive while contributing fairly to the nation’s revenue.