New tax laws to favour poor Nigerians – Oyedele
Taiwo Oyedele
New tax laws to favour poor Nigerians – Oyedele
*Effective from 2026, January 1.
The chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, on Thursday, described the newly signed tax laws as “pro-poor,” saying they will ease the burden on low-income earners, small business owners, and everyday Nigerians.
Oyedele made the disclosure while speaking to State House correspondents shortly after President Bola Tinubu signed four tax bills into law.
He said “More than 1/3 of workers in both the private and public sectors will now be exempted completely from PAYE.
“They will not have to pay personal income tax. Small businesses, over 90 per cent of small and micro, nano businesses, will no longer have to worry about paying corporate income tax or charging VAT or even deducting withholding tax or paying PAYE for their employees.”
Oyedele added that the reforms will leave “more money in the hands of the ordinary Nigerian to take care of their daily needs,” and announced a new zero‑rate VAT framework on essential items.
“Any traces of VAT in food, in education, in medical and health care is now removed completely, so we should see prices of those items come down,” Oyedele explained.
He also emphasised relief for sectors where households spend most, clarifying that “transportation, accommodation and housing is exempt from VAT… collectively account for more than 80 per cent of where Nigerians spend their money. That’s a huge relief for them.”
Oyedele further noted that the reforms include measures to boost tax collection efficiency and transparency.
He said “provisions have been made “to help us improve efficiency…in how we collect taxes, and also efficiency in the transparency of reporting the taxes we collect, which we expect should then be linked to how those taxes are utilised for the purpose of the people.”
Also speaking to journalists, the Executive Chairman of the National Revenue Service (formerly Federal Inland Revenue Service), Zacch Adedeji, said the newly signed tax reform bills will take effect on January 1, 2026.
He said this would give the administration six months for planning, education, and alignment with the fiscal calendar.
He said: “Based on best practices globally, because when you have this kind of change, it takes time for all the stakeholders, participant operators, and even the way regulator to change the system.
“So with the magnanimity of the National Assembly, Mr. President, the effective date will be January 1, 2026 by the special grace of Almighty God.”
Adedeji stressed the importance of launching the reforms at the start of a new calendar year, saying, “When you have this kind of change, it’s not what you do mid-year. Because if the application of law is better, you start from the beginning of the year.
“So effective dates, by God’s grace, will be first of January 2026,” he added.
This timeline, Adedeji explained, allows for adequate sensitisation, planning, and harmonisation with government budgeting frameworks.
