October 8, 2025
About 98 per cent of Nigerian workers will be exempted from paying Pay-As-You-Earn, PAYE, tax under the new tax laws, this is according to the Presidential Fiscal Policy and Tax Reforms Committee.
Speaking at the 31st Nigerian Economic Summit (NES31) in Abuja on Tuesday, Chairman of the committee, Mr Taiwo Oyedele said the new tax laws are expected to take effect from January 2026.
Oyedele, said that the reforms were designed to protect low-income earners and those living around the poverty line, while ensuring fairness and efficiency in Nigeria’s tax administration.
He said though plans were ongoing to reduce the corporate income tax rate from 30 per cent to 25 per cent as part of the broader fiscal reform agenda, the Federal Government generated good revenue from tax in 2024.
READ MORE; President Tinubu Signs Tax Reform Bills Into Law.
“The more inequality you create, the more time-bomb you have. These reforms are designed to strengthen governance around revenue generation, improve accountability, and ensure that tax revenues are effectively utilised,” he said.
Oyedele said that the tax reforms would help enhance the country’s sovereign credit rating, lower borrowing costs for both government, businesses, and stimulate private-sector investment.
He stated that the reform process had been inclusive, with engagements across all sectors of the economy, including persons with disabilities, farmers, and Nigerians in the diaspora.
“No one was left out. We worked with every state, consulted widely with stakeholders, and co-created solutions to the challenges identified in the fiscal system,” he said.
READ MORE; NLC Wants Tinubu To Withdraw Tax Reform Bills For More National Inputs.
Oyedele commended President Bola Tinubu for adopting an implementation-focused approach, which allows the committee not only to design reforms but also to work directly with government institutions to execute them.
“Our Committee is unique because we are not just submitting a report; we are part of the implementation process.
” The goal now is to ensure public understanding, capacity building, and effective rollout of these laws,” he said.
He further noted that the tax reforms are expected to broaden Nigeria’s tax base, improve compliance, and make the system more equitable.
