[Nigeria] 98% of workers will be exempted from PAYE in 2026

[Nigeria] 98% of workers will be exempted from PAYE in 2026
09 Oct 2025

In Nigeria, the Chairman of the Presi­dential Fiscal Policy and Tax Reforms Committee has announced that new tax laws have made provisions for the exemption of more than 90 per ­cent of workers from PAYE, Independent reports.

Mr Taiwo Oyedele was speaking during a panel session at the ongoing 31st Nigerian Economic Summit (NES#31) in Abuja on October 7. He said the implementation of the new tax laws would take effect from January 2026.

The chairman reportedly stated that the new tax laws are targeted at protecting low-paid workers or those at the poverty line.

He said, “We cannot tax poverty, about 97 to 98 per cent of Nigerians will no longer pay the PAYE, but the two per cent will pay more as high-income earners.”

Mr Oyedele said it’s wrong to hold the perception that the tax reforms are meant to impose higher tax­es and insisted that the objective is rather to reduce business risks.

He said, “The tax reforms are not to impose high­er taxes. You won’t find that any­where in the laws. Rather, they are to reduce business risk.”

Mr Oyedele added, “I can give you examples. We have companies in Nigeria that are being asked to pay minimum tax on their capital. So the idea is to reduce business risk, make the environment simpler.”

He reportedly advised those in the in­formal sector to formalise their businesses to enjoy the benefits included in the new tax laws.

The chairman acknowledged that the previous system had disincentivised formalisation; however, he noted that the new tax law is reversing it.

Mr Oyedele said, “We are now trying to reverse it. It’s the reason we have to take the top rates for personal income tax to 25 per cent.

“Still lower than 35 per cent in Ghana, 35 per cent in Kenya, 45 per cent in South Africa.

“And we’re reducing the corpo­rate tax rate from 30 per cent to 25 per cent, so people no longer have a disincentive to formalisation.

“So in a nutshell, because I can go on and on, is that this is not im­posing higher taxes. It is reducing business risk, creating simplification, and it is pro-growth.

“Because we know that when you grow, taxes will come as a nat­ural consequence.”


Source: Independent

(Quotes via original reporting)

 

In Nigeria, the Chairman of the Presi­dential Fiscal Policy and Tax Reforms Committee has announced that new tax laws have made provisions for the exemption of more than 90 per ­cent of workers from PAYE, Independent reports.

Mr Taiwo Oyedele was speaking during a panel session at the ongoing 31st Nigerian Economic Summit (NES#31) in Abuja on October 7. He said the implementation of the new tax laws would take effect from January 2026.

The chairman reportedly stated that the new tax laws are targeted at protecting low-paid workers or those at the poverty line.

He said, “We cannot tax poverty, about 97 to 98 per cent of Nigerians will no longer pay the PAYE, but the two per cent will pay more as high-income earners.”

Mr Oyedele said it’s wrong to hold the perception that the tax reforms are meant to impose higher tax­es and insisted that the objective is rather to reduce business risks.

He said, “The tax reforms are not to impose high­er taxes. You won’t find that any­where in the laws. Rather, they are to reduce business risk.”

Mr Oyedele added, “I can give you examples. We have companies in Nigeria that are being asked to pay minimum tax on their capital. So the idea is to reduce business risk, make the environment simpler.”

He reportedly advised those in the in­formal sector to formalise their businesses to enjoy the benefits included in the new tax laws.

The chairman acknowledged that the previous system had disincentivised formalisation; however, he noted that the new tax law is reversing it.

Mr Oyedele said, “We are now trying to reverse it. It’s the reason we have to take the top rates for personal income tax to 25 per cent.

“Still lower than 35 per cent in Ghana, 35 per cent in Kenya, 45 per cent in South Africa.

“And we’re reducing the corpo­rate tax rate from 30 per cent to 25 per cent, so people no longer have a disincentive to formalisation.

“So in a nutshell, because I can go on and on, is that this is not im­posing higher taxes. It is reducing business risk, creating simplification, and it is pro-growth.

“Because we know that when you grow, taxes will come as a nat­ural consequence.”


Source: Independent

(Quotes via original reporting)

 

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