The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, says Nigerians earning ₦250,000 or less per month will be exempt from paying taxes under the new tax laws signed by President Bola Tinubu. Speaking in an interview, Oyedele explained that the reforms are designed to protect low-income households and ensure that the government does not “tax poverty.”
He said the tax reforms, which take effect from January 2026, will reduce the burden on middle-income earners while slightly increasing rates for the top five percent. Households with a monthly income between ₦1.8 million and ₦2 million will also see tax relief compared to current rates.
Also Read: Oil, Manufacturing Sector Got Highest Tax Exempt In 2022
According to Oyedele, the threshold was drawn after analysing local economic realities, including family size, rural living conditions, and subsistence lifestyles. He noted that the committee settled on ₦250,000 as the income line below which families should not be taxed, adding that such households can meet basic needs but cannot afford luxuries.
He also disclosed that Nigeria currently collects only 30 percent of potential tax revenue. The new laws, he said, are efficiency-driven and aimed at stimulating economic growth, enhancing compliance, and closing the country’s 70 percent tax collection gap.
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