Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, has stated that Nigerians earning N100 million or more per month will pay a 25% personal income tax.
This will happen if the National Assembly passes a new tax bill.
According to Oyedele, 90% of current taxpayers should not be taxed, and he advocates for a more simplified and equitable tax structure in the country.
This disclosure was made on Monday during a breakout session of the 30th Nigeria Economic Summit, which is being hosted by the Nigerian Economic Summit Group and the Ministry of Budget and National Planning in Abuja.
Oyedele emphasized the need to balance easing the tax burden for lower-income earners and ensuring the wealthy contribute more to government revenue.
“If you earn N100m a month, we are taking up to 25 per cent from the rich people. That’s because we need to balance the books,” Oyedele stated.
The fiscal policy expert said the government is prepared and determined to ensure that the right individuals pay taxes, noting that his committee is actively working to achieve the goal.
He added that the proposed changes are expected to take effect in January 2025, based on lawmakers’ passage of the bill.
For middle-income earners making N1.5m or less per month, Oyedele disclosed that their personal income tax obligations would decrease. At the same time, those earning higher amounts would see incremental increases in their tax rates, eventually reaching 25 percent. Lower-income earners would be fully exempt from personal income tax.
The reforms also aim to ease the tax burden on businesses.
Oyedele noted: “Today, whatever VAT you (businesses) pay on assets—whether you’re building a factory, buying a laptop, or vehicles—you bear it. This increases your cost, and therefore, your pricing will go up. Once our reforms are implemented, you get the credit back 100 percent on services and assets.”
