Nigerian workers are beginning to see a marginal increase in their take-home pay following the implementation of the federal government’s new tax laws, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has said.
Oyedele disclosed this on his official X (formerly Twitter) handle, citing feedback from salaried workers who received their January 2026 wages and observed lower Pay As You Earn (PAYE) deductions.
According to him, early responses suggest that the revised tax framework is already providing some relief to employees, particularly those in the formal sector whose income taxes are deducted at source.
“The reduction in PAYE deductions reflects the early impact of the ongoing tax reforms,” Oyedele said, adding that the policy shift is intended to ease the financial pressure on workers, increase disposable income and stimulate broader economic activity.
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He explained that beyond reducing the tax burden on salary earners, the reforms are also designed to simplify tax administration and improve compliance across the country, amid longstanding concerns over inefficiency and leakages in Nigeria’s tax system.
Oyedele noted that the reforms are largely targeted at formal sector employees, where PAYE remains the dominant mode of income tax collection, stressing that the government expects the changes to gradually translate into improved living conditions for workers.
The federal government has repeatedly argued that its tax reform agenda is aimed at balancing revenue generation with social equity, even as Nigerians continue to grapple with rising inflation, high cost of living and stagnant wages.
