New tax law increases take-home pay for most Nigerian workers
Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, has highlighted the positive impact of the new Nigeria Tax Act 2025 on workers’ disposable income. The law restructures the Pay-As-You-Earn tax, prioritising relief for middle- and low-income earners. According to Oyedele, the reform aims to shift the tax burden away from those least able to afford it and introduces incentives for small businesses and the digital economy. He also clarified that the government does not intend to raise tax rates but will focus on efficiency and reducing tax evasion.
TLDR
- Taiwo Oyedele stated that the new Nigeria Tax Act 2025 boosts disposable income for most workers by restructuring personal income tax.
- The law exempts minimum wage earners from personal income tax and lowers taxes for the middle class, while high-income earners pay more.
- Small businesses with annual turnover below N100m can now register as companies and pay zero per cent corporate income tax.
- The reform removes barriers for foreign companies hiring Nigerians for remote work, promoting global competitiveness.
- Oyedele assured that the government will not increase tax rates, focusing instead on better compliance and curbing tax evasion to raise revenue.
