Nigeria Launches New Tax Policy for Small Businesses

The Federal Government of Nigeria unveiled a new tax policy on Wednesday, designed to integrate small businesses into a formal tax system. This initiative, announced by the Finance Minister, Wale Edun, focuses on traders, artisans, and micro-enterprises across the country.

The new presumptive tax framework aims to simplify tax obligations and eliminate abusive collection practices. Olusegun Adesokan, the Executive Secretary of the Joint Revenue Board, emphasized that tax officials will no longer be permitted to collect taxes through roadblocks on highways or markets.

Instead, collections will adhere to structured legal channels. The government believes this framework will enhance compliance, protect vulnerable entrepreneurs from harassment, and support the growth of small businesses without increasing tax rates.

This reform is part of a broader strategy to expand the tax base and reduce multiple taxation while curbing illegal levies imposed by local revenue agents. The initiative was officially launched in Abuja on Tuesday.