Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has announced that Nigerians earning ₦250,000 or less monthly will no longer be required to pay personal income tax under the country’s newly signed tax laws.
Oyedele made this known during an appearance on Channels Television’s Politics Today on Thursday, shortly after President Bola Ahmed Tinubu signed four new tax bills into law at the Presidential Villa, Abuja.
According to him, the revised tax laws, which will take effect in January 2026, are aimed at fostering economic growth, improving tax compliance, and shielding low-income earners from financial strain.
“This tax law will not put cash in your pocket, but at least it won’t take cash away from you if you are poor,” Oyedele said.
He explained that the committee, after extensive debate, defined the poverty line based on Nigerian realities rather than international benchmarks, ultimately classifying anyone earning ₦250,000 or less as poor.
“We looked at an average household of five, with two income earners. If the total household income is ₦250,000 or less, they can barely meet basic needs. So, they should not be taxed,” he clarified.
The tax reform, part of Tinubu’s broader economic agenda, is expected to reduce the burden on middle-income earners—those making up to ₦2 million per month—while introducing modest increases for higher-income individuals.
Oyedele also revealed that Nigeria currently captures only 30% of its potential tax revenue, with the reforms designed to bridge the remaining 70% gap by boosting efficiency, equity, and accountability within the system.
