Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr. Taiwo Oyedele, has revealed that between 97 and 98 percent of Nigerian workers will be exempted from the Pay-As-You-Earn (PAYE) tax under the new tax law.
Speaking during a session at the 31st Nigerian Economic Summit (NES31) in Abuja, Oyedele explained that the new tax regime—set to take effect in January 2026—aims to protect low-income earners and those living near the poverty line from additional financial pressure.
He disclosed that the Federal Government generated N3.36 trillion in revenue last year, adding that the upcoming tax reforms are part of a broader plan to make the system fairer, more transparent, and growth-oriented.
According to Oyedele, the new policy will also reduce the corporate income tax rate from 30 percent to 25 percent, a move expected to ease business costs and stimulate private sector investment.
“These reforms are designed to improve the governance system around revenue generation—covering taxation, accountability, and how public funds are spent,” he stated.
The new tax framework, developed under President Bola Tinubu’s economic renewal agenda, seeks to expand the tax base, encourage voluntary compliance, and promote inclusive growth without overburdening citizens.
