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Nigerians earning less than N250,000 per month will be exempt from paying income tax under new tax laws approved by President Bola Tinubu. According to Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, “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.”
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The new laws, set to take effect in January 2026, aim to stimulate economic activity, track tax evaders and protect businesses. Oyedele stated that the tax reforms are “efficiency-driven, growth-focused, and people-centric.” He added that the committee debated the poverty line for an average Nigerian, considering factors beyond just income.
For those earning between N1.8 million and N2 million per month, taxes will be reduced, benefiting about 5% of the Nigerian population. Oyedele explained, “If you are earning that amount and below, your tax will not be zero but it will reduce from what you are paying today.”
The tax boss noted that Nigeria currently collects only about 30% of potential tax revenue, with the new laws aiming to close the 70% gap. Oyedele emphasized that the objective is not to increase taxes but to ensure the government doesn’t tax poverty. As he put it, “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
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