Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr. Taiwo Oyedele, has disclosed that about 98 percent of Nigerian workers will be exempted from paying Pay-As-You-Earn (PAYE) tax under the new tax laws scheduled to take effect from January 2026.
Speaking at a session during the 31st Nigerian Economic Summit (NES31) in Abuja, Oyedele explained that the reforms are designed to protect low-income earners and those living around the poverty line, while ensuring fairness and efficiency in Nigeria’s tax administration.
He further revealed that the Federal Government generated good revenue from tax last year, even as plans are underway to reduce the corporate income tax rate from 30 percent to 25 percent as part of the broader fiscal reform agenda.
‘The more inequality you create, the more time-bomb you have. These reforms are designed to strengthen governance around revenue generation, improve accountability, and ensure that tax revenues are effectively utilised,’ Oyedele said.
According to him, the reforms will help enhance Nigeria’s sovereign credit rating, lower borrowing costs for both government and businesses, and stimulate private-sector investment.
Oyedele noted that the reform process has been inclusive, with engagements across all sectors of the economy, including persons with disabilities, farmers, and Nigerians in the diaspora.
‘No one was left out. We worked with every State, consulted widely with stakeholders, and co-created solutions to the challenges identified in the fiscal system,’ he added.
He commended President Bola Tinubu for adopting an implementation-focused approach, which allows the Committee not only to design reforms but also to work directly with government institutions to execute them.
‘Our Committee is unique because we are not just submitting a report; we are part of the implementation process. The goal now is to ensure public understanding, capacity building, and effective rollout of these laws,’ Oyedele stated.
The reforms, he emphasised, are expected to broaden Nigeria’s tax base, improve compliance, and make the system more equitable, ensuring that those with the ability to pay contribute fairly, while protecting those most vulnerable.