The Chairman, Presidential Fiscal Policy and Tax Reforms Committee, Mr Taiwo Oyedele, has said as a result of the new tax laws, Nigerian employees are beginning to experience a rise in their take-home pay due to the reduction in Pay As You Earn deductions.
Oyedele, who said this via his official X handle based on feedback from employees who had received their January 2026 salaries, noted that early responses indicated that the revised tax framework was already delivering tangible relief to salary earners, particularly those whose income taxes are deducted at source.
He said the decline in PAYE deductions reflected the initial impact of the Federal Government’s ongoing tax reforms, which are aimed at easing the financial burden on workers, increasing disposable income and supporting broader economic growth.
Oyedele explained that the reforms were also designed to simplify tax administration and improve compliance nationwide.
The committee chairman added that the reforms were structured to provide targeted relief for employees within the formal sector, where PAYE remains the primary mode of income tax collection.
- Business Post