The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has revealed that Nigerian households earning ₦250,000 or less per month are classified as poor and exempt from paying taxes under the new tax laws signed into effect by President Bola Tinubu.
Speaking on Channels Television’s Politics Today, Oyedele explained that the new laws aim to stimulate economic activity, track tax evaders, and protect businesses, rather than increase taxes. He emphasized that the laws are efficiency-driven, growth-focused, and people-centric.
According to Oyedele, the committee debated the poverty line of an average Nigerian and determined that individuals earning below ₦250,000 per month do not have enough to pay taxes. He added that those earning between ₦1. The new tax laws will reduce taxes for those earning between ₦1.8 million and ₦2 million per month, who make up about 5% of the Nigerian population.
The former tax leader at PriceWaterhouseCoopers (PwC) stated that Nigeria currently collects only about 30% of what the country should be receiving in taxes, and the objective of the new tax laws is to close the 70% gap.
The new tax laws, which will take effect from January 2026, are designed to be efficient, growth-focused, and people-centric, with Oyedele assuring that they will not take cash away from poor individuals. “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,” he said.