Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has unveiled 50 new tax exemptions and reliefs taking effect in 2026 to ease the burden on low-income earners, small businesses, and promote a fairer, more inclusive tax system.
Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has announced 50 new tax exemptions and reliefs aimed at reducing financial pressure on low-income earners, average taxpayers, and small businesses. The reforms, which will take effect on January 1, 2026, are designed to promote fairness, simplicity, and inclusiveness in Nigeria’s tax system.
Oyedele explained that individuals earning the national minimum wage or less will be exempt from Personal Income Tax, while those earning up to ₦1.2 million annually will enjoy full exemption. Workers earning below ₦20 million yearly will also benefit from reduced PAYE rates.
Other key provisions include tax-free pension funds, gratuities, rent reliefs of up to 20 percent, and exemptions for small companies with turnovers not exceeding ₦100 million. Agricultural enterprises will receive a five-year tax holiday, while startups and investors will also benefit from special exemptions.
Value Added Tax on essential goods and services, such as food, education, health, rent, and transport has been suspended or zero-rated.
Oyedele further launched the Influencing for Good initiative to train content creators to educate Nigerians on the reforms, describing the move as “one of the most people-focused tax reforms in Nigeria’s history.”