Nigeria's tax framework has introduced simplified tax return provisions designed to ease the compliance burden on micro-enterprises operating in the informal sector.
The move targets the vast informal economy, where small-scale traders, artisans, and service providers have historically operated outside the formal tax net due to complex filing requirements and limited administrative capacity.
By offering streamlined return formats, the law aims to lower the barrier to formalisation, encouraging voluntary compliance among micro-businesses that may lack access to professional accounting services.
The simplified returns are structured to capture essential income and expense information without the detailed reporting obligations typically required of larger corporate taxpayers.
