Like Oyo State, Federal Government Unveils Presumptive Tax Regime for Informal Sector
The Federal Government has introduced new Presumptive Tax Regulations aimed at simplifying tax compliance for micro, small and medium enterprises (MSMEs) across Nigeria, marking a significant milestone in the country’s fiscal reform agenda.
Announcing the development as part of the 2026 fiscal reform programme, the Minister of Finance and Coordinating Minister of the Economy, Hon. Wale Edun, said the reforms move Nigeria’s tax system “from legislation to structured execution,” delivering greater operational clarity for tax authorities and predictability for small businesses.
The new framework, issued under the administration of President Bola Ahmed Tinubu, is designed to make compliance simpler and fairer, particularly for micro and small businesses that often struggle with complex record-keeping requirements.
Under the Presumptive Tax Regulations, eligible businesses will be assessed based on turnover bands, eliminating the need for complicated financial records.
The government emphasized that the reform expands the tax base without increasing tax rates.
Simple Assessment: Taxes will be determined using clearly defined turnover bands, reducing compliance burdens.
No Arbitrary Enforcement: A rules-based system is intended to protect businesses from unfair or discretionary assessments.
Broader Tax Base: The strategy focuses on widening participation rather than raising rates.
Formal Economy Entry: The framework is expected to create a structured pathway for informal businesses to enter the formal sector, unlocking access to credit, insurance and growth opportunities.
The reform aligns with the Federal Ministry of Finance’s broader strategic pillars for 2026, which include non-oil revenue mobilisation, MSME formalisation, cooperative federalism through alignment between federal and state tax authorities, and strengthening investor confidence by demonstrating consistent reform execution.
According to Edun, micro and small businesses remain the backbone of Nigeria’s economy, and the new system is structured to reduce compliance costs while promoting inclusion.
“Our fiscal strategy is anchored on expanding the tax base rather than increasing tax rates. Inclusion drives sustainability,” the minister stated.
The government noted that a stronger and more diversified revenue base will enhance its capacity to fund infrastructure, social investments, security and long-term economic growth, while reinforcing investor confidence in Nigeria’s reform trajectory.
Like Oyo State, Federal Government Unveils Presumptive Tax Regime for Informal Sector
Byadmin
Mar 4, 2026