The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has announced that Small and Medium Enterprises (SMEs) will pay less tax starting January 2026 when the new tax law takes effect.
Oyedele made this known during a fireside chat titled “The New Tax Law and You” at the 24th annual conference of Women in Management, Business, and Public Service (WIMBIZ), held at the Eko Hotel, Victoria Island, Lagos.
Responding to questions on the expected tax rate for SMEs, Oyedele explained that the forthcoming tax reforms are people-centric, aimed at promoting growth, efficiency, and fairness rather than increasing the financial burden on Nigerians.
“The reforms are people-centric. They focus on efficiency and growth, and you can see how we’ve translated each of these into the letters of the new tax law,” he said.
Speaking further, Oyedele revealed that minimum wage earners will be completely exempted from paying taxes, while individuals earning slightly above that threshold will also enjoy significant relief.
“From next year, minimum wage earners will not pay tax. Above minimum wage, up to ₦500,000 per month, will not pay any tax because they’re exempted from PAYE,” he explained.
He added that individuals earning above ₦2 million monthly would experience only a slight increase in their tax obligations, estimated at between ₦2,000 and ₦3,000, under the new system.
Oyedele assured that the Tinubu administration’s fiscal reforms are designed to make taxation more equitable, stimulate business growth, and strengthen compliance without overburdening citizens or small enterprises.
