[Nigeria] Workers report higher take-home pay after PAYE reduction

In Nigeria, the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee announced that the nation’s workers are now receiving higher take-home salaries due to reduced PAYE deductions under the new tax laws, The Guardian reports.

Taiwo Oyedele used his Twitter account to share employee feedback on the salaries they received in January 2026. Previously, he had stated that about 98 per cent of Nigerian workers will either pay no PAYE tax or pay lower taxes under the new framework.

Mr Oyedele reportedly said that early indications have shown that the new tax framework is already easing workers’ tax burden, particularly those whose taxes are deducted at source by their employers.

He said, “We are pleased to note the feedback from workers who have received their January 2026 salaries and have confirmed a reduction in their PAYE tax, resulting in higher take-home pay under the new tax laws.” He added that the reforms are particularly beneficial for employees whose income tax is deducted directly by their employers.

“To ensure that relevant individuals responsible for implementing these changes for the benefit of employees in their organisations are well informed, the Presidential Fiscal Policy and Tax Reforms Committee is hosting a session for key stakeholders in collaboration with the Joint Revenue Board.”

The chairman added that the session, scheduled for January 28, was for HR Directors, Payroll Managers, Chief Financial Officers, Tax Managers, and other Senior Executives responsible for managing employee compensation and payroll tax compliance.

The federal government recently began the implementation of a new tax reform framework anchored in the Nigerian Tax Act and the Nigerian Tax Administration Act. The reforms aim to simplify Nigeria’s tax system, reduce multiple taxation, and promote fairness across income groups.

The new regime has ignited public concern that it will worsen their cost-of-living crisis.

Source: The Guardian

(Quotes via original reporting)

In Nigeria, the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee announced that the nation’s workers are now receiving higher take-home salaries due to reduced PAYE deductions under the new tax laws, The Guardian reports.

Taiwo Oyedele used his Twitter account to share employee feedback on the salaries they received in January 2026. Previously, he had stated that about 98 per cent of Nigerian workers will either pay no PAYE tax or pay lower taxes under the new framework.

Mr Oyedele reportedly said that early indications have shown that the new tax framework is already easing workers’ tax burden, particularly those whose taxes are deducted at source by their employers.

He said, “We are pleased to note the feedback from workers who have received their January 2026 salaries and have confirmed a reduction in their PAYE tax, resulting in higher take-home pay under the new tax laws.” He added that the reforms are particularly beneficial for employees whose income tax is deducted directly by their employers.

“To ensure that relevant individuals responsible for implementing these changes for the benefit of employees in their organisations are well informed, the Presidential Fiscal Policy and Tax Reforms Committee is hosting a session for key stakeholders in collaboration with the Joint Revenue Board.”

The chairman added that the session, scheduled for January 28, was for HR Directors, Payroll Managers, Chief Financial Officers, Tax Managers, and other Senior Executives responsible for managing employee compensation and payroll tax compliance.

The federal government recently began the implementation of a new tax reform framework anchored in the Nigerian Tax Act and the Nigerian Tax Administration Act. The reforms aim to simplify Nigeria’s tax system, reduce multiple taxation, and promote fairness across income groups.

The new regime has ignited public concern that it will worsen their cost-of-living crisis.

Source: The Guardian

(Quotes via original reporting)