Reported by: Ijeoma G | Edited by: Gabriel Osa

The Federal Government of Nigeria has officially banned the use of roadblocks nationwide for the purpose of collecting taxes and levies, a practice that has long been criticised by motorists, traders, and transport operators as arbitrary, disruptive and opaque. The announcement came on March 3, 2026, in Abuja during a high-profile signing ceremony introducing a new Presumptive Tax Framework designed to overhaul and modernise the country’s tax system. 

The directive was disclosed by Mr Olusegun Adesokan, Executive Secretary of the Joint Revenue Board (JRB), who explained that the new regulations explicitly prohibit tax authorities from mounting roadblocks on highways and public roads for the collection of any form of tax or levy. The policy shift forms part of broader tax reforms aimed at eliminating informal and coercive revenue collection methods that have historically affected businesses and commuters in both urban centres and rural areas.

The Presumptive Tax Framework, which was signed at the Ministry of Finance, was described by officials as a transition from policy formulation to active implementation of the comprehensive tax reform package. This follows the passage of four major tax reform bills in 2025 — including the Nigeria Tax Act, Nigeria Tax Administration Act, Nigeria Revenue Service (Establishment) Act, and Joint Revenue Board (Establishment) Act — which collectively aim to harmonise and modernise tax administration across federal, state and local government levels. 

According to government officials, the prohibition of roadblocks addresses long-standing grievances from businesses and transporters who have lodged complaints about endless checkpoints where officials demand payment of levies under varying pretexts. These roadblocks had often been justified by some state and local authorities as mechanisms for revenue mobilisation but were widely criticised for creating bottlenecks, increasing transportation costs, and fostering corrupt practices at checkpoints. 

In addition to banning roadblocks, the new regulations also outlaw cash collection of taxes by revenue agencies and encourage the adoption of technology-driven tax payment systems to enhance transparency, accountability and efficiency. This, officials contend, will reduce opportunities for corruption and make compliance easier for taxpayers, particularly in the informal sector. 

Under the framework, nano and micro enterprises with an annual turnover of ₦12 million or below are exempt from tax, while other informal sector operators will pay a flat one per cent tax on turnover. The policy is expected to bring millions of traders, artisans, and small businesses currently operating outside the formal tax net into a structured taxation ecosystem. This integration is seen as essential for expanding the government’s revenue base without imposing undue burdens on vulnerable enterprises. 

Finance Minister and Coordinating Minister of the Economy, Wale Edun, stated that the reforms reflect the government’s commitment to fiscal discipline, economic inclusion, and the broader goal of supporting sustainable economic growth. He described the initiative as a means of linking tax policy to Nigeria’s economic recovery objectives, including boosting gross domestic product (GDP) growth and fostering a predictable business environment. 

The move has been welcomed by business associations, transport unions and civil society groups that have long decried the proliferation of unauthorized checkpoints, arbitrary fees and irregular levies imposed on road users. Stakeholders assert that eliminating these practices will help lower operating costs for haulage companies, reduce travel delays, and improve the ease of doing business in Nigeria. Prior to the ban, such practices had often been the subject of litigation and protest, including legal challenges seeking to curb multiple taxation on federal highways and trunk roads. 

However, legal and tax experts emphasise that implementation and enforcement will be critical to the effectiveness of the ban. There are questions about how compliance will be monitored, particularly at state and local levels where revenue officers have traditionally exercised wide latitude in collection activities. An ombudsman mechanism is planned to handle complaints and provide oversight during the rollout of the reforms. 

The policy also aims to align Nigeria’s tax administration with international best practices by discouraging informal enforcement methods and promoting trust between taxpayers and revenue authorities. Critics of the old system argued that roadblocks were often used as tools of harassment, with little accountability for tax collection activities and inadequate recourse for motorists or businesses forced to pay. 

Historically, legal frameworks such as the Taxes and Levies (Approved List for Collection) Act have prohibited unauthorized collection and the mounting of roadblocks for tax collection, including provisions that make such actions punishable as offences — but enforcement has been uneven. The new regulations are intended to reinforce these legal standards and ensure uniform application across all jurisdictions. 

As the ban on roadblocks takes effect, federal regulators and state revenue agencies are expected to coordinate more closely with security forces and digital payment platforms to enforce the new rules. The success of this transition will be closely watched by businesses and civil society, as it could signal a significant shift in how taxes are administered in Nigeria — moving from fragmented, informal practices to a more transparent and accountable system. 

📩 Stone Reporters News | 🌍 stonereportersnews.com
✉️ info@stonereportersnews.com | 📘 Facebook: Stone Reporters | 🐦 X (Twitter): @StoneReportNew | 📸 Instagram: @stonereportersnews