The chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr Taiwo Oyedele, has said that, as a result of the recently introduced tax laws, Nigerian employees are beginning to experience a rise in their take-home pay due to the reduction in PAYE (Pay As You Earn) deductions.
Mr Oyedele disclosed this on Monday via his official X handle, referencing feedback from employees who have received their January 2026 salaries. He 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.
According to him, the decline in PAYE deductions reflects 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.
He added that the reforms were also designed to simplify tax administration and improve compliance nationwide.
The committee chairman expressed satisfaction with the early outcomes of the policy changes, saying they demonstrated the government’s commitment to ensuring that tax reforms translate into tangible benefits for workers.
He explained 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.