Nigeria’s tax reforms will exempt up to 98% of citizens from PAYE by January 2026, targeting relief for low-income earners while taxing the wealthy more.
ABUJA — The chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has announced that nearly all Nigerians will be exempted from paying Pay As You Earn (PAYE) tax starting January 2026.
Speaking at the ongoing 31st Nigerian Economic Summit (NES31) in Abuja on Tuesday, Oyedele said the reform would shield low-income earners and those living near the poverty line. “We cannot tax poverty, about 97 to 98 percent of Nigerians will no longer pay the PAYE, but the 2 percent will pay more as high-income earners,” he explained.
He stressed that the new framework would not only reduce the tax burden on most Nigerians but also promote fairness and equity. The committee is expected to roll out additional reforms aimed at boosting transparency, accountability, and foreign investments in the country’s economy.
The initiative forms part of the Tinubu administration’s broader efforts to restructure taxation and support inclusive growth.