The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has assured Nigerians that the new tax laws will “lighten the burden for most citizens.”
He stated that “about 97 to 98 per cent of Nigerians will either not pay tax at all or less than they currently do” once the reforms are fully implemented.
Speaking on Channels Television on Tuesday, Oyedele said his committee has developed a “digital tax calculator” to help people determine their tax payments.
He said, “We have a tax calculator on our website, and you will see the QR code on the screen. With your phone, just put in your income, and it will tell you how much tax you are paying now versus the one you will pay under the new law. You will see that for the majority of Nigerians — like 97 to 98 per cent — they will pay no tax or less tax under the new law when it comes into effect.”
Oyedele outlined how the reform affects different income brackets:
- Low-income earners: “If you earn ₦100,000 per month or less, you are exempted from paying personal income tax from January. That is even higher than the minimum wage,” he noted.
- Middle class: “If you are a middle-class person who earns around ₦1.8 or ₦1.9 million annually, you will see a deduction in the taxes you pay,” he said.
- High-income earners: “For high-income earners and high-net-worth individuals, there will be marginal increases depending on the size of your income. This is how it’s done everywhere in the world — to protect vulnerable people and let those who can pay a little more, pay a little more,” Oyedele explained.
He also said the reform is designed to support businesses, especially small and medium-sized enterprises.
He added, “Before, the exemption threshold for corporate income tax was ₦25 million. Under this new law, it is up to ₦100 million. So if your business makes up to ₦100 million a year, you don’t need to pay corporate income tax. It’s zero per cent. We didn’t have this before.”
Oyedele stressed that one of the committee’s main priorities is tackling the “long-standing problem of multiple taxation.”
He said, “If you look at the list of taxes and levies, there are more than 60. These were not introduced by this government. What we are doing is asking: ‘Does this list make sense? Can we repeal many of them and harmonise the ones that are good?’”
He added that under the new law, Nigeria could move to “fewer than 10” taxes, which he called “a single-digit tax system that will be simpler, fairer, and easier to administer.”
He also noted that “obsolete taxes” like “bicycle tax, wheelbarrow tax, radio and TV levies” are in the constitution and would require an amendment to be removed.
Oyedele emphasized that the process is not about “introducing new taxes” but about “streamlining and modernising the system.”
He said, “This government has not introduced any new tax. We are repealing, harmonising, and creating transparency so that ordinary Nigerians can understand what they pay, and businesses can thrive without harassment from multiple agencies.”
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