Nigeria has taken a legislative step towards bringing the country’s vast informal sector into the tax net through the introduction of simplified tax returns designed specifically for micro-enterprises.
The new provisions, embedded in recent tax law amendments, seek to lower the compliance barrier that has long kept small-scale traders, artisans, and service providers outside the formal tax system. By simplifying the return-filing process, the law aims to encourage voluntary registration and regular filing among businesses that have traditionally operated off the books.
Micro-enterprises form the backbone of Nigeria’s economy, accounting for a significant share of employment and economic activity. Yet their contribution to government revenue has remained disproportionately low due to the complexity and cost of existing tax compliance procedures.
The simplified return framework is expected to reduce paperwork, shorten filing time, and minimise the need for professional tax assistance — addressing key pain points that have discouraged informal businesses from engaging with tax authorities.
Further details on the specific thresholds, filing frequency, and qualifying criteria for the simplified regime were not available at the time of reporting.
