By Erewunmi Peace

The Federal Government of Nigeria has officially banned the collection of taxes in cash across the country as part of new tax reform regulations aimed at improving transparency and accountability in revenue administration.
The new directive also prohibits the use of roadblocks and roadside checkpoints for the enforcement or collection of taxes and levies.

The announcement was made during the signing of the Presumptive Tax Regulations and Guidelines at the Federal Ministry of Finance in Abuja. The reform is part of broader efforts by the administration of President Bola Tinubu to modernize Nigeria’s tax system and strengthen fiscal governance.

What the New Regulation Means
Under the new framework:

• All tax payments must be made through approved electronic and non-cash channels.
• Revenue agencies and officials are no longer permitted to collect physical cash from taxpayers.
• Roadside tax enforcement and checkpoint collections have been outlawed nationwide.

Government officials say the move is designed to curb revenue leakages, eliminate unofficial collections, and ensure that tax payments go directly into government accounts.

Focus on Informal Sector

The regulation forms part of a broader Presumptive Tax Framework intended to integrate informal businesses into the formal tax system in a structured and transparent manner.

According to officials, the reforms will:

• Improve ease of doing business
• Reduce harassment of small business owners
• Promote digital accountability
• Strengthen public trust in tax administration

Why This Matters

For many Nigerians, roadside tax collection and cash-based enforcement have long raised concerns about corruption and lack of transparency. By eliminating cash transactions and informal collection methods, the government aims to create a more standardized and traceable tax system.

The implementation phase is expected to involve coordination between federal and state revenue agencies to ensure compliance nationwide.