The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has clarified that Nigeria’s new Tax Reform Act exempts churches and mosques from taxation. Speaking in a viral interview, he noted that religious institutions remain tax-exempt unless they operate as businesses. However, he stressed that individuals employed by such institutions, including pastors and imams, must pay personal income tax if they earn above the taxation threshold.
Mr Oyedele explained that the law categorises taxpayers strictly by income level and is neutral regarding “gender, race, religion, and belief.” He added that low-income earners will pay no personal income tax from 2026, while middle-class taxes will reduce and high-income earners will pay more. He also reiterated earlier remarks that anyone offering a service, including sex workers, is liable to taxation under the law.