The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has announced that Nigerian households earning ₦250,000 or less per month will be exempt from paying taxes under the new tax laws signed by President Bola Tinubu.
Oyedele, a former tax leader at PricewaterhouseCoopers (PwC), explained that the new laws are aimed at stimulating economic activity, protecting businesses, and ensuring the government does not “tax poverty” while improving compliance among higher earners.
Speaking on the design of the laws, Oyedele described them as efficiency-driven, growth-focused, and people-centric.
“This tax law will not put cash in your pocket, but at least it won’t take your cash away if you are poor,” he said, adding that the committee had carefully considered Nigeria’s economic realities when defining the poverty line for tax purposes.
The committee concluded that households earning ₦250,000 or less monthly fall within the poverty bracket and should therefore be exempt from tax obligations. Oyedele noted that this group represents a significant portion of the Nigerian population.
For those earning between ₦1.8 million and ₦2 million per month, representing about 5% of the population, the new laws will bring a reduction in their tax burden.
Oyedele further highlighted that Nigeria currently collects only about 30% of its potential tax revenue, and the new tax laws aim to close the existing 70% collection gap while promoting economic growth.
The new tax policies are scheduled to take effect from January 2026.
