Small and Medium Enterprises (SMEs) across Nigeria will begin to pay less tax starting January 2026, when the Federal Government’s new tax law officially takes effect, according to Mr. Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee.
Speaking during a fireside chat titled “The New Tax Law and You” at the 24th Annual Conference of Women in Management, Business, and Public Service (WIMBIZ) held at Eko Hotel, Victoria Island, Lagos, Oyedele explained that the forthcoming reforms are designed to ease the burden on Nigerians and support inclusive economic growth.
He emphasized that the new framework aims to make tax administration simpler, fairer, and more growth-driven.
“So, the reforms are people-centric. They focus on efficiency and growth, and you see how we’ve translated each of these into the letters of the new tax law,” he said.
Okay News reports that under the new structure, minimum wage earners will be completely exempted from paying income tax, while individuals earning up to ₦500,000 monthly will also be tax-free.
Oyedele further clarified that low and medium-income earners will experience slight adjustments, but the goal is to ensure fairness.
“From January next year, you will pay less tax. Currently, someone earning ₦30,000 or ₦40,000 still pays tax. But from next year, that will change. Minimum wage earners will not pay any tax, and those earning up to ₦500,000 monthly will be exempted as well,” he said.
He added, “For those earning above that threshold, the increase will be very minimal — maybe ₦2,000 or ₦3,000 at most.”
The reform package, which takes effect from January 1, 2026, will introduce 50 new tax exemptions and reliefs, benefiting low-income earners, small businesses, and average taxpayers.
According to Oyedele, the objective is to ensure that Nigeria’s tax policy supports investment, competitiveness, and long-term economic stability.
