By Abubakar Yunusa
Taiwo Oyedele, chairman of the presidential fiscal policy and tax reforms committee, has clarified the tax implications of the newly revised tax laws, emphasising that low-income earners will no longer pay personal income tax from January.
Oyedele spoke stated this in Saturday when he was featured as a guest on Mic on podcast and monitored by Elanza news .
According to him, “anybody earning the national minimum wage — currently ₦70,000 — or slightly above it, will not pay tax so long as their taxable income after reliefs and deductions does not exceed ₦800,000 per year.”
He stressed that taxable income is calculated after allowable deductions, not on gross salary.
He explained that the new measures ensure that minimum-wage earners and other low-income Nigerians are fully exempted, saying the system has been designed to be more progressive.
Oyedele also disclosed adjustments in the Value Added Tax structure. Under the new arrangement, VAT revenue will now be credited to states where consumption actually occurs.
“Previously, most consumption was reported out of Lagos, and Lagos got the credit. Now, if you make calls in Kano or buy goods in Enugu, those states will benefit accordingly,” he said.
He noted that social media content creators and online influencers have always been taxable under existing laws, just like traders and business owners offline. What has changed, he said, is the exemption for those earning low incomes.
“If you earn about ₦100,000 a month or less, from January your income tax disappears,” he explained.
For those earning between ₦100,000 and ₦1.8 million monthly, he said taxpayers will see a reduction in their monthly tax, resulting in higher take-home pay.
However, individuals earning above ₦1.92 million per month may observe slight increases.
“If you earn one billion a year, up to 25 per cent of your income will go to taxes so the system remains progressive,” he added.
He clarified that religious bodies do not pay tax on offerings or donations. However, individuals must have paid their personal taxes before making such contributions.
“Nothing has changed under the new law,” he said.
Responding to concerns from students and retirees, he stated clearly:“If you are a student with no business income or investment income, you will not pay tax. Stipends, gifts and school allowances are not taxable.”
However, students who earn income from YouTube, influencing or digital platforms must pay tax like anyone else.
“Retirees will not pay tax on pensions or retirement benefits, but those running businesses after retirement must comply with tax rules.
He emphasised that the reformed tax system protects low-income Nigerians who need support to meet basic needs.
“Middle-income earners also benefit from reliefs, while high-income earners and high-net-worth individuals are required to pay a fairer share.”
He pointed out that even with the adjustments, Nigeria’s top personal income tax rate of 25 per cent remains one of the lowest globally.
“In Ghana and Canada, it is 35 per cent; in South Africa, 45 per cent,” he stated.
He dismissed claims that the President is “introducing taxes everywhere”, describing it as a false narrative.
“People can’t mention one tax this President has introduced on the masses. Instead, he has reversed more taxes than any government I know,” he said.
Taxes reversed by the current administration include:the 5% excise on telecommunications services,the cybersecurity levy,excise duty on imported vehicles,carbon emissions charges,taxes on single-use plastics, among others.
He added that the President has also ordered the harmonisation of over 60 federal taxes and more than 200 informal levies.
“The aim is to reduce the burden so the ordinary person can breathe,” he said.
