The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has disclosed that Nigerian workers are already experiencing higher take-home pay following a reduction in Pay As You Earn (PAYE) deductions under the newly implemented tax laws.
Oyedele made the disclosure in a post on X (formerly Twitter) on Monday, citing feedback from employees who received their January 2026 salaries. According to him, early signs indicate that the new tax framework is easing the tax burden on workers, particularly those whose income taxes are deducted at source.
“We are pleased to note the feedback from workers who have received their salaries for January 2026 and confirmed a reduction in their PAYE tax, resulting in higher take-home pay under the new tax laws,” Oyedele stated.
He explained that the reforms are especially beneficial to salaried workers whose taxes are automatically deducted by their employers, ensuring immediate relief without additional compliance requirements on their part.
The federal government recently commenced implementation of a comprehensive tax reform framework anchored on the Nigerian Tax Act and the Nigerian Tax Administration Act. The reforms aim to simplify the tax system, eliminate multiple taxation, improve compliance, and promote fairness across income groups.
Oyedele had earlier noted that about 98 per cent of Nigerian workers would either pay no PAYE tax or significantly lower taxes under the new framework. He also revealed that approximately 97 per cent of small businesses would be exempt from corporate income tax, value-added tax (VAT), and withholding tax, while larger companies are expected to benefit from reduced tax liabilities.
Addressing public concerns surrounding the reforms, Oyedele reiterated that the changes are designed to ensure Nigerians pay less tax overall, while strengthening efficiency, transparency, and revenue sustainability.
