The Federal Government has officially banned the use of roadblocks for collecting taxes and levies across Nigeria. The announcement was made by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, in Abuja on Tuesday while presenting new regulations for the Presumptive Tax for the informal sector.
According to the Minister, the reform aims to stimulate economic growth by making tax collection fairer and more transparent. He emphasized that nano and small businesses will be exempted from the Presumptive Tax to support their growth and expansion.
Edun highlighted that previous ods of tax collection through roadblocks have been inefficient and sometimes exploitative. The government’s new approach will rely on proper registration and digital tracking, minimizing unnecessary harassment for business owners.
This decision has been welcomed by various industry stakeholders who have long criticized roadblocks as a hindrance to commerce. Business owners say that the ban will improve trade and reduce the cost of doing business, particularly for small and medium enterprises SMEs.
The Minister also reassured Nigerians that the new framework will ensure compliance while promoting business development. He called on state governments and tax authorities to align their operations with the federal directive.
Observers note that this reform aligns with President Bola Tinubu’s economic policies aimed at reducing Nigeria’s dependence on borrowing while boosting domestic revenue. Analysts believe that proper implementation could improve the business climate, encourage investment, and strengthen informal sector contributions to the economy.
The government plans to roll out sensitization programs to educate business owners about the new rules and procedures for paying the Presumptive Tax, ensuring that all stakeholders understand and comply with the system.
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