The Chairman of the Presidential Fiscal Policy and Tax Reform Committee, Taiwo Oyedele, has disclosed that a significant majority of Nigerians—at least nine out of every ten—will soon be exempted from paying the Pay As You Earn tax under the new tax reform plans.
Speaking on Tuesday at the ongoing Nigerian Economic Summit in Abuja, Oyedele revealed that approximately 98 percent of the country’s population will no longer be liable to pay PAYE tax beginning January 2026.
He noted that the upcoming tax laws are designed to ease the financial burden on low-income earners and those living at or below the poverty line.
“We cannot tax poverty, about 97 to 98 percent of Nigerians will no longer pay the PAYE, but the 2 percent will pay more as high income earners,” Oyedele explained.
He added that the reform is part of a broader effort to create a fairer and more inclusive tax system, ensuring that wealthier individuals contribute a greater share while shielding the economically vulnerable from further hardship.
