Nigeria: FG Proposes N250,000 Monthly Earning Tax Exemption Under New Fiscal Laws
Abuja, Nigeria – The Nigerian government is set to exempt households earning N250,000 or less per month from personal income taxes under a new fiscal policy framework. This significant announcement was made by Taiwo Oyedele, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, on Thursday, following President Bola Tinubu’s assent to four pivotal tax bills.
Speaking on Channels Television’s ‘Politics Today,’ Oyedele clarified that the primary objective of these new laws, slated to take effect from January 2026, is not to increase the tax burden on citizens. Instead, the reforms aim to stimulate economic activity across the country and effectively track tax evaders, fostering a more robust and equitable tax system.
Oyedele emphasized that the new legislation is designed to protect businesses and prevent the taxation of poverty. He described the impending laws as “efficiency-driven, growth-focused, and people-centric,” underscoring the administration’s commitment to prioritizing the welfare of its citizens.
“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,” Oyedele stated, highlighting the relief it would offer to low-income earners.
When pressed to define what his committee considers a “poor household” for the purpose of tax exemption, Oyedele explained, “We came up with a N120,000 or N130,000 per two people working in a household of five.” He elaborated further on the N250,000 threshold: “If the earnings are about N250,000, they can take care of themselves. Of course, they are not going to have luxury, but at least they can take care of themselves. They are poor, and they shouldn’t pay taxes.”
The tax reforms represent a progressive shift, according to Oyedele. He concluded by asserting, “We have eliminated the tax component for people at the bottom, we have reduced it for people at the middle, and we have increased slightly for people at the top.” This tiered approach aims to redistribute the tax burden more equitably across different income brackets.
