The Federal Government has announced that approximately one-third of Nigeria’s workforce will be exempted from paying personal income tax starting in January 2026, as part of a sweeping reform aimed at creating a fairer, more inclusive fiscal system.
Key Points:
Workers earning N100,000 or less monthly will no longer pay personal income tax.
The exemption is expected to affect roughly one in every three Nigerian workers.
Middle-income earners (N100,000 to N2 million monthly) will also see reduced tax rates.
Only the top 2% of earners (over N120 million annually) will face a slightly higher rate of 25%.
Corporate tax has been reduced from 30% to 25%, with a 0% rate for small businesses under N100 million turnover.
Reforms aim to repeal colonial-era laws and streamline multiple, confusing tax agencies.
Oyedele emphasized that the move is designed to support household purchasing power and business growth.
This overhaul represents a foundational rethinking of equity in Nigeria’s economy, aiming to root growth not in burdening the vulnerable but in empowering the base and simplifying the system for all.
Sources: Business Day, Business Post