The Federal Government yesterday formally banned the collection of taxes in cash and prohibited the mounting of roadblocks for revenue enforcement across the country, signalling a decisive shift in Nigeria’s tax administration under newly enacted reforms.
The announcement was made in Abuja by the Executive Secretary of the Joint Revenue Board, Olusegun Adesokan, during the signing of the Presumptive Tax Regulations and Guidelines at the Federal Ministry of Finance.
He said the new framework is aimed at ending informal, coercive and fragmented tax practices, particularly at the subnational level.
“It bans all forms of cash collection by tax authorities.
It also bans the mounting of roadblocks for the collection of taxes,” Adesokan said.
He explained that the regulations would entrench transparency and equity, especially within the commerce and informal sectors, and align tax administration across federal, state and local governments.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, described the development as a transition from legislative approval to operational enforcement of tax reforms enacted in 2025 and early 2026.
“With the signing of these regulations, we are transitioning from regulation to structured implementation of the tax reforms,” Edun said, stressing that the reforms are anchored on transparency, fairness and economic inclusion.
Under the new presumptive tax regime, nano and small businesses with an annual turnover of N12m and below are exempted, while a one per cent tax on turnover will apply to other categories of informal businesses.
Edun maintained that the reforms are not designed to increase tax rates but to broaden the tax base in a structured and equitable manner.
“We’ll expand the tax base, not raising taxes, but expanding so that each bears his rightful contribution to the common cause,” he said.
Chairman of the National Tax Policy Implementation Committee, Joseph Tegbe, said the signing marked a shift from policy intention to practical execution, noting that the informal sector employs over 80 per cent of Nigeria’s workforce but has historically contributed little to structured public revenue due to systemic weaknesses.
The reforms stem from sweeping tax legislation signed in June 2025 by President Bola Tinubu, including the Nigeria Tax Act, which overhauled decades-old tax statutes and modernised the country’s tax system.
In a related development, the Federal Airports Authority of Nigeria has commenced full enforcement of electronic payment systems across airports nationwide to block revenue leakages and strengthen accountability.
Speaking at the National Assembly Complex after appearing before the House of Representatives Committee on Finance, FAAN’s Managing Director and Chief Executive Officer, Olubunmi Kuku, said the initiative is designed to ensure that all revenues generated at airports — particularly at toll gates and other collection points — are transparently processed and fully remitted.
“This initiative is about accountability and sustainability. We are ensuring that every kobo due to the Federal Government is collected without leakages, while also improving operational efficiency,” she said.
According to Kuku, enforcement of the cashless system began on Sunday following months of sensitisation and stakeholder engagement.
She acknowledged initial traffic congestion at some airport toll gates but described it as part of an adjustment phase. She clarified that while FAAN-issued cashless cards are available, they are not the only payment option.
Four payment channels are currently in place: annual e-tags for frequent users, VIP stickers for approved users, personal bank ATM cards including contactless or NFC-enabled cards, and FAAN-issued cashless cards obtainable within airport premises and through partner banks.
The agency’s renewed push aligns with the Federal Government’s broader cashless policy and follows longstanding concerns over revenue leakages at manual toll points.
With the twin measures, outlawing cash tax collection and automating airport revenue systems, the government is tightening oversight of public revenues while advancing a coordinated national framework aimed at transparency, accountability and sustainable economic growth.
