At least nine out of every ten Nigerians will no longer pay the Pay As You Earn (PAYE) tax from January 2026, according to Taiwo Oyedele, chairman of the Presidential Fiscal Policy and Tax Reform Committee.
Oyedele made the announcement on Tuesday during the 31st Nigerian Economic Summit (NES#31) in Abuja, noting that the forthcoming tax framework is designed to relieve low-income earners while ensuring equitable contributions from wealthier citizens.
He explained that the new policy will fundamentally restructure Nigeria’s income tax system, ensuring that individuals at or below the poverty line are exempt from direct taxation.
“We cannot tax poverty,” Oyedele stated. “About 97 to 98 percent of Nigerians will no longer pay the PAYE, but the remaining 2 percent — the high-income earners — will contribute more.”
The reform, which aligns with President Bola Tinubu’s broader fiscal consolidation agenda, seeks to enhance fairness and transparency in Nigeria’s tax regime while improving compliance and revenue efficiency.
Oyedele added that the new tax laws will take effect from January 2026, providing sufficient time for legislative adjustments and administrative preparation.
The PAYE overhaul is part of the committee’s wider mandate to simplify the tax system, eliminate multiple taxation, and expand the fiscal space for businesses and individuals.
Further details of the new framework, including thresholds, rates, and implementation guidelines, are expected to be released in the coming months.
