Nigerians Earning ₦250,000 Monthly or Less Exempt from Tax Under New Law — FG

Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, has announced that Nigerian households earning ₦250,000 or less per month will no longer be required to pay taxes under the new tax laws recently signed by President Bola Tinubu.

Speaking on Politics Today on Channels Television, Oyedele clarified that the reform is designed to shield low-income earners from tax burdens, describing those within that income range as poor. The exemption takes effect from January 2026.

Oyedele explained that the reforms aim not to raise taxes but to boost economic activity, close the tax collection gap, and make the system more efficient and inclusive. He said the new framework is “efficiency-driven, growth-focused, and people-centric.”

“This law won’t put money in your pocket, but it also won’t take money from you if you’re poor,” Oyedele noted, emphasizing that individuals earning below ₦250,000 monthly simply do not have enough to spare for taxes.

The former PwC tax lead said the new structure eliminates taxes for low-income earners, reduces them for the middle class, and marginally increases them for high earners.

According to him, middle-income earners, defined as those earning between ₦1.8 million to ₦2 million monthly, will see reduced tax rates.

To determine the poverty threshold, the committee considered both international standards and local realities, factoring in rural lifestyles where people produce their own food and spend less on transportation.

Based on a five-person household with two earners, they calculated that ₦250,000 monthly income is just enough to meet basic needs.

Oyedele added that Nigeria currently collects only about 30% of its potential tax revenue, and the goal of the reform is to bridge the remaining 70% gap without taxing the poor. [CONTINUE READING HERE]>>>>>