Trending 
The Nigerian Government on Wednesday issued new presumptive tax rules to make compliance simpler and fairer for Micro, Small, and Medium Enterprises (MSMEs) across Nigeria.
The Federal Ministry of Finance made this known on its official X account through a statement signed by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun.
The statement read, “Big news for small businesses. Hon. Wale Edun, Minister of Finance and Coordinating Minister of the Economy, has issued new Presumptive Tax Rules; simpler compliance, no rate increases, and a clear pathway into the formal economy for MSMEs across Nigeria.”
The Minister explained that the fiscal strategy is anchored on expanding the tax base rather than increasing tax rates. “Inclusion drives sustainability”, he added.
The finance minister noted that while there are no tax rate increases, the new framework will protect millions of MSMEs across the 36 states and the FCT from unfair tax assessments.
“Micro and small businesses are the backbone of Nigeria’s economy. This framework reduces compliance costs and provides a structured pathway into the formal sector. Our fiscal strategy is anchored on expanding the tax base rather than increasing tax rates. Inclusion drives sustainability,” Mr Edun stated.
The new Presumptive Tax Regulations will make it easy for micro and small businesses through turnover-based assessments that eliminate complex record-keeping and arbitrary enforcement.
Exemptions apply to nano and small enterprises with annual turnover below N12 million, while others face a flat 1% rate, alongside nationwide bans on cash tax collections and roadblocks to reduce harassment.
The rule targets formalising Nigeria’s vast informal sector to employ over 80% of the workforce by broadening the tax base without rate increases, thereby, enabling access to credit and insurance for growth.
This new presumptive tax rule is a part of President Bola Tinubu’s Renewed Hope Agenda.
