hairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Dr. Taiwo Oyedele, has announced that 98 percent of Nigerians will either stop paying tax or see a major reduction in their Pay As You Earn (PAYE) rates when the new tax law takes effect in January 2026.
Speaking at the Nigerian Economic Summit in Abuja, Oyedele said only about two percent of high-income earners will pay more under the restructured system, while the majority will enjoy relief or total exemption.
“You can’t be taxed in poverty and then magically become a wealthy country,” he said. “We’ve established a poverty line, a middle class, and the wealthy — those below the line won’t pay tax.”
According to Oyedele, households earning about ₦200,000 per month, covering two employed people supporting five dependents, will fall under the exemption category. Middle-class earners will pay less, while only top earners will pay slightly higher rates.
He also revealed that corporate tax will be reduced from 30% to 25%, while small businesses earning ₦100 million or less annually will be exempt. The reforms, he said, aim to encourage business formalization and fairness across income levels.
Oyedele added that the government is aware of state concerns about potential revenue impact but said the reforms are necessary for sustainable economic growth
