Tax Reforms: Nigerians earning between N50,000 and N70,000 monthly will be exempted from paying tax – Presidency
Nigerian workers earning above N70,000 monthly will be required to pay taxes
Taiwo Oyedele, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, stated that if the proposed tax reform bills are passed by the National Assembly and signed by the president, 30 percent of Nigerians earning between N50,000 and N70,000 monthly will be exempt from paying taxes.
He clarified that the tax reform bills, proposed by President Bola Tinubu, aim to alleviate the tax burden on 90 percent of Nigerian workers. “If these proposals are approved by the Senate, they will reduce taxes for 90 percent of our workers, both in the private and public sectors, and exempt more than 30 percent of our citizens who earn approximately minimum wage, around N50,000, N60,000, and N70,000,” he explained.
Oyedele noted that Nigerian workers earning above N70,000 monthly will be required to pay taxes. He added that those earning N100 million monthly would pay 25 percent of their income as tax. “The remaining 10 percent, who are not classified as poor, will pay a slightly higher rate. Currently, the top rate is 24 percent, and we are proposing an increase to 25 percent. We are also implementing other reforms concerning allowances and relief.”
He emphasized that for someone earning N100 million a month, the maximum tax they would pay is 25 percent. “In comparison, if they were in South Africa, they would pay 41 percent; in Kenya, 35 percent; and in the UK or the US, they would be close to 40 percent. But in Nigeria, the maximum is only 25 percent.”
Additionally, Oyedele explained that the bills aim to review the Value Added Tax (VAT) sharing formula, ensuring that each state receives a more equitable distribution based on consumption within their territory. More
