Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, announced that under Nigeria’s new tax laws, households earning ₦250,000 or less per month will be classified as poor and exempt from paying taxes.
Speaking on Channels Television’s “Politics Today” on Thursday, shortly after President Bola Tinubu signed four new tax bills into law, Oyedele, the former tax leader at PwC, described his two-year tenure as the committee chair as both “eventful and challenging.”
He explained that the new laws, which will become effective in January 2026, are not intended to increase taxes but to stimulate economic activity and target tax evaders.
Oyedele emphasized that the legislation is designed to protect businesses and ensure that the government does not tax poverty, describing the new laws as “efficiency-driven, growth-focused, and people-centric.”
“This tax law will not give you cash in your pocket, but at least it won’t take your cash away if you are poor,” he said.
Oyedele clarified that anyone earning below ₦250,000 per month will not have to pay taxes.
He elaborated on the progressive tax structure, stating, “We have eliminated the tax component for people at the bottom, we have reduced for people at the middle, and we have increased slightly for people at the top.”
He estimated that for those in the middle-income bracket, earning around ₦1.8 to ₦2 million a month, their tax burden will decrease from what they pay now.
He noted that this group constitutes about 5% of the Nigerian population.
To determine the new poverty line, Oyedele’s committee debated the income needed for an average Nigerian household.
He explained, “We drew our own (poverty) line for Nigeria on the basis of an average of five people per family: two people working if they are lucky, taking care of the five.”
Based on their calculations, an income of about ₦250,000 for a two-income household of five would allow them to take care of themselves, though without luxury. “They are poor, and they shouldn’t pay taxes,” he concluded.
Oyedele also stated that Nigeria currently collects only about 30% of its potential tax revenue, and the new laws aim to close this 70% gap.
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