Abuja, Nigeria — March 5, 2026
The Federal Government has introduced the Presumptive Tax Reform 2026 as part of broader efforts to simplify taxation, expand the tax base, and improve compliance among small businesses and informal sector operators.
The reform initiative, championed by the administration of President Bola Ahmed Tinubu, is aimed at creating a more inclusive and efficient tax system that supports economic growth while reducing the burden of complex tax procedures on micro and small enterprises.
Presumptive taxation is a system where tax liabilities are determined based on estimated income levels or simplified indicators such as business turnover, location, or type of trade, rather than detailed financial records. The approach is widely used to bring informal sector participants into the tax net while making compliance easier.
Officials say the reform is designed to improve revenue generation while promoting fairness and transparency in the country’s tax administration framework.
Under the reform, small-scale entrepreneurs, traders, and artisans operating in Nigeria’s informal economy will benefit from a simplified tax structure that reduces bureaucratic processes and encourages voluntary compliance.
The policy is expected to be implemented in collaboration with key revenue authorities, including the Federal Inland Revenue Service (FIRS), which will oversee enforcement and coordination with state tax agencies.
Government officials say the reform will also leverage digital platforms to improve tax collection efficiency and provide better record-keeping for small businesses.
According to the Federal Government, expanding the tax base through simplified systems will enable greater revenue mobilization while ensuring that businesses can operate within a transparent and predictable fiscal environment.
The Presumptive Tax Reform 2026 forms part of Nigeria’s broader fiscal reform agenda aimed at strengthening public finance management, boosting domestic revenue, and supporting sustainable national development under the leadership of the Federal Government of Nigeria.