The Federal Government on Tuesday formally banned the mounting of roadblocks to collect taxes and levies across the country. This decisive move aims to end a long-standing practice that has disrupted commerce and transportation on Nigerian roads. The ban is a key component of a broader tax reform programme being implemented by the administration of President Bola Ahmed Tinubu, signaling a shift towards more structured and less intrusive revenue collection methods.
Simultaneously, the federal government has moved to bring millions of small and informal businesses into the formal economy with the signing of a new presumptive tax framework. This new system explicitly prohibits the use of roadblocks by tax officials to collect levies, reinforcing the government's commitment to the ban. The framework is designed to simplify tax compliance for informal sector operators, potentially broadening the nation's tax base and increasing government revenue in a more systematic manner.
This policy shift occurs against a backdrop of significant growth in certain tax revenues. Verified statistics show that Value Added Tax (VAT) collections rose year-on-year by 34 percent to N6.4 trillion in the first nine months of 2025, up from N4.77 trillion in the corresponding period of 2024. Furthermore, Company Income Tax collections surged by an even more impressive 48 percent to N7.72 trillion in 9M’25, indicating robust formal sector performance or improved collection efficiency.
However, the government's focus on revenue is juxtaposed with brewing industrial unrest in a critical sector. The National Union of Electricity Employees (NUEE) has intensified mobilisation of its members nationwide for a possible strike next week. This follows the expiration of its 21-day ultimatum to the Federal Government, which was issued in a letter dated January 26, 2026, and addressed to the Minister of Power.
The union's grievances are severe, accusing power sector employers—particularly distribution companies (DISCOs) and generation companies (GENCOs)—of widespread anti-labour practices and wage violations. A central allegation is the failure to remit deducted Pay As You Earn (PAYE) taxes and pension contributions, which directly impacts workers' welfare and future security. This potential strike threatens to plunge the nation into darkness and disrupt economic activity, creating a significant challenge for the Tinubu administration.
Meanwhile, lawmakers have raised separate concerns about fiscal management in other areas. Their worries include uncollected duties, missing data from the Corporate Affairs Commission (CAC), and the implementation of cashless payments at airports. These issues highlight ongoing challenges in revenue administration and transparency that extend beyond the new tax framework for informal businesses.
In a different context highlighting community resilience, an initiative by Stanley Anigbogu, who set up a powerful new light called the Lighthouse for Peace, demonstrates innovation. The centerpiece of this project is a charging station built out of roughly 30,000 discarded plastic bottles, showcasing sustainable local solutions. This effort supports a community where no less than 3,500 people, about 1,500 of them children, have weathered over a decade of displacement, underscoring the diverse challenges facing different parts of the country.
The Federal Government's twin actions—banning disruptive tax collections and introducing a formalization framework—represent a significant policy pivot. While aimed at improving the business environment and revenue collection, their success will be tested against immediate pressures like the looming power sector strike and deeper systemic issues of compliance and remittance identified by lawmakers and unions alike.
