The Federal Government has issued new presumptive tax rules, making compliance simpler and fairer for Micro, Small, and Medium Enterprises (MSMEs) across Nigeria.

The Federal Ministry of Finance made this known on Wednesday through a statement it shared on its official X account.

“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.

“Our fiscal strategy is anchored on expanding the tax base rather than increasing tax rates. Inclusion drives sustainability.”

The new Presumptive Tax Regulations will simplify compliance for micro and small businesses via 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.

As part of President Bola Tinubu’s Renewed Hope Agenda, the rules target formalising Nigeria’s vast informal sector employing over 80% of the workforce by broadening the tax base without rate increases, thereby, enabling access to credit and insurance for growth.