Individuals earning up to ₦100,000 per month will be exempt from personal income tax from 2026 under Nigeria’s new tax reforms, according to Taiwo Oyedele, chairman of the Presidential Fiscal Policy and Tax Reforms Committee. He said the measures are designed to reduce the burden on low-income earners, promote fairness, encourage compliance, and support broader economic growth nationwide, inclusive, implementation.
He explained that the first ₦800,000 of taxable income now attracts a zero percent rate, effectively exempting workers earning about ₦100,000 monthly after statutory deductions. Speaking at a Lagos workshop, Oyedele said many workers confuse gross income with taxable income and urged employees to use official tax calculators and question discrepancies reflected in their take-home pay under the new system.
Oyedele said the reforms also raise taxes for top earners, expand efforts to formalise the informal sector, and strengthen compliance through measures such as the Office of the Tax Ombudsman. He added that corporate tax cuts, VAT input credits, and suspended levies are intended to support businesses, improve transparency, and reset Nigeria’s fiscal framework over the medium term nationwide implementation.
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