Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, don announce say the new tax laws wey go start from January 1, 2026 go give relief, exemptions and make many people no dey burden with tax. Here na the gist of who go fit sidon well-well:
Pipo wey dey collect minimum wage or less — dem go exempt from PAYE (Pay As You Earn).
Anyone wey annual gross income reach up to about ₦1.2 million (roughly ₦800,000 taxable income) — dem go fit exempt.
People wey annual gross income dey up to around ₦20 million — dem go still dey, but tax go lighter.
Small businesses: Companies wey turnover no pass ₦100 million and total fixed assets no pass ₦250 million — dem go pay 0% tax or enjoy big exemption.
Pensions, gratuities, compensation for job loss up to ₦50 million — these dey tax-exempt.
Essentials: Basic food items, education services/materials, health services, pharmaceutical products, transport — dem dey exempt or VAT go 0%. 2
Bottom line: If you dey low-income earners, small business, or your salary dey moderate, you dey one of dem wey go benefit big time from this reform. But if you dey among high income earners or big business, you go still dey taxed, and maybe your tax go move.
If you like, I fit break am down into income brackets, business category, and what you go do to qualify in simple Pidgin – you wan make I?
