Abuja (Nigeria): The Presidential Fiscal Policy and Tax Reforms Committee states that approximately 98 per cent of Nigerian workers will be exempted from paying Pay-As-You-Earn (PAYE) tax under the new tax laws.
The new tax laws had been scheduled to take effect from January 2026.
The Chairman of the committee, Mr Taiwo Oyedele, said this at the 31st Nigerian Economic Summit (NES31) in Abuja on Tuesday.
He said that the reforms were designed to protect low-income earners and those living around the poverty line, while ensuring fairness and efficiency in Nigeria’s tax administration.
Oyedele stated that the Federal Government generated substantial revenue from taxes in 2024, even as plans were underway to reduce the corporate income tax rate from 30 per cent to 25 per cent 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,” he said.
Oyedele stated that the reforms would help enhance the country’s sovereign credit rating, lower borrowing costs for both the government and businesses, and stimulate private sector investment.
The Chairman said that the reform process had 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 said.
Oyedele 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,” he said.
According to Oyedele, the reforms 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.