Federal Government has signed the Presumptive Tax Regulations, formally moving Nigeria’s tax reform from legislation to structured implementation.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, says the regulation is designed to promote transparency and fairness in the tax system, reducing disputes and making tax compliance easier for small businesses.
Chairman of the National Tax Policy Implementation Committee, Joseph Tegbe, notes that nearly 80% of Nigeria’s workforce operates within the informal sector, which has largely remained outside the tax net due to unclear regulations. He says the new system will now ensure their contributions to economic growth are properly captured.
The Presumptive Tax Regulations will allow tax authorities to estimate tax liabilities based on indicators such as business type and location, rather than detailed profit-and-loss records. The move is expected to simplify compliance, encourage formalisation, and ease administrative processes for both taxpayers and regulators.
(Editor: Terverr Tyav)
