The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has confirmed that Nigerians earning N250,000 or less per month will no longer pay taxes beginning January 2026. The change follows the signing of a sweeping new tax law by President Bola Tinubu, signaling a strategic move to revamp Nigeria’s tax structure.
Speaking on Channels Television’s Politics Today, Oyedele emphasized that the reform is designed to promote fairness, drive economic growth, and make the tax system more responsive to the realities of everyday Nigerians. He noted that the tax exemption for low-income earners acknowledges that such individuals simply cannot afford to contribute taxes without sacrificing basic needs.
“If you’re earning below N250,000, the new law ensures that your income is protected. It won’t add to your pocket, but it also won’t take anything away,” he explained. The committee’s analysis determined that a household earning that amount, especially in rural settings where costs are lower, could support a family of five with two earners meeting their basic needs.
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Oyedele further clarified that the reforms will benefit various income brackets differently. While low-income Nigerians will be completely exempt from tax, those earning between N1.8 million and N2 million monthly will see a reduction in their tax rates. However, high-income earners will experience a modest increase as the government seeks a more balanced tax structure.
According to Oyedele, the policy aligns with global standards but is customized to fit Nigeria’s socio-economic landscape. Currently, Nigeria collects only about 30 percent of its potential tax revenue, and this reform is part of a broader strategy to boost compliance without hurting those at the bottom of the economic ladder.
The announcement has stirred conversations nationwide, with many hailing the move as a welcome relief for millions grappling with inflation and rising living costs. As 2026 approaches, attention will turn to implementation and how the new law affects everyday life for Nigeria’s working-class citizens.
