Mkpoikana Udoma
Port Harcourt — Nigeria has introduced new Presumptive Tax Rules aimed at simplifying tax compliance for micro, small and medium enterprises, MSMEs, while expanding the country’s tax base without increasing tax rates.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, announced the initiative as part of the Federal Government’s broader fiscal reform strategy to strengthen revenue mobilisation and deepen economic inclusion.
Edun said the new framework will make it easier for small businesses across the country to comply with tax regulations while providing a structured pathway for them to transition into the formal economy.
According to the minister, the policy is designed to remove the complexities often associated with tax administration for smaller enterprises, which frequently operate outside formal regulatory structures.
“Our fiscal strategy is anchored on expanding the tax base rather than increasing tax rates. Inclusion drives sustainability,” Edun stated.
He explained that the presumptive tax framework introduces simplified compliance mechanisms that reduce administrative burdens on MSMEs, allowing them to meet their obligations more easily while participating in Nigeria’s formal economic system.
The reform aligns with the economic agenda of President Bola Ahmed Tinubu, which prioritises fiscal sustainability, improved revenue generation, and the creation of a more inclusive economic environment for businesses.
Under the new rules, small businesses will be able to comply with tax requirements through simplified procedures that are expected to reduce compliance costs and encourage voluntary participation.
The government believes that widening the tax net through simplified regimes for MSMEs will strengthen long-term fiscal sustainability while supporting Nigeria’s transition to a more structured and transparent economic system.
