Move targets illegal levies, boosts ease of doing business, and exempts nano businesses from new tax framework.

In a sweeping reform aimed at dismantling illegal tax practices and energising economic growth, the Federal Government has announced an immediate nationwide ban on the use of roadblocks for the collection of taxes and levies.

The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, made the announcement on Tuesday in Abuja during the unveiling of new regulations guiding the Presumptive Tax regime for Nigeria’s informal sector.

Describing the move as a critical step toward modernising Nigeria’s tax system, Edun said the era of obstructive and arbitrary roadside collections—long criticised by businesses, transporters, and traders—has come to an end.

According to the minister, the ban is designed to eliminate harassment, reduce multiple taxation, and create a more predictable business environment, particularly for small-scale operators and commercial drivers who have borne the brunt of such practices.

At the heart of the reform is the newly introduced Presumptive Tax framework, which shifts informal sector taxation to a structured, transparent, and simplified system. The model is tailored to reflect the realities of small businesses while broadening the tax net in a fair and sustainable way.

Edun emphasised that nano and small businesses will be exempt under the new structure, giving them breathing space to stabilise, grow, and gradually integrate into the formal economy. He noted that the long-term objective is to foster voluntary compliance rather than coercive enforcement.

The reforms form part of broader federal efforts to streamline tax administration, eliminate overlapping levies imposed by multiple authorities, and strengthen Nigeria’s ease of doing business ranking.

Industry stakeholders have long decried roadside tax collections as disruptive, exploitative, and damaging to commerce. With the new directive, the government signals a decisive break from such practices while positioning the economy for more inclusive growth.