Nigerians who earn less than N250K a month will now be exempt from paying income tax under new laws, according to Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms.
Oyedele revealed this during an appearance on Channels Television’s Politics Today, shortly after President Bola Tinubu signed four new tax bills into law on Thursday.
He explained that households earning N250K or less monthly are now officially classified as poor.
Appointed by the President in July 2023, Oyedele described his two-year leadership of the tax reform committee as both challenging and eventful.
He explained that the new laws, set to take effect in January 2026, are not designed to raise taxes but to boost economic activity and improve the tracking of tax evaders.
Oyedele added that the laws aim to protect businesses and ensure the government does not tax poverty, stressing that the reforms are focused on efficiency, growth, and the welfare of the people.
He said, “This tax law will not give you cash in your pocket, but at least it won’t take your cash away if you are poor.”
He stated that no one earning below that amount would be required to pay taxes, as they don’t earn enough to be taxed.
“We have eliminated the tax component for people at the bottom, we have reduced for people at the middle, and we have increased slightly for people at the top.
“That middle, we estimated it at about N1.8 to N2m a month. If you are earning that amount and below, your tax will not be zero but it will reduce from what you are paying today,” he stated, noting that those who earn this amount are about 5% of the total Nigerian population.
The tax chief explained that, to reach this decision, his committee examined and debated the poverty line for the average Nigerian.
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