Tax Reform Bills: Nigerians Earning Below N250K Monthly to Pay Zero Income Tax – Taiwo Oyedele

In a significant move aimed at providing relief to low-income earners, the Federal Government of Nigeria has announced that individuals earning less than N250,000 per month will be exempt from paying personal income tax under new legislation. This was disclosed by Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms. The exemption is part of a broader effort by the government to reform Nigeria’s tax system, make it more equitable, and reduce the financial burden on vulnerable segments of the population.

According to Oyedele, the new tax framework is designed to encourage voluntary compliance while ensuring that the tax system does not disproportionately affect those with limited earnings. The initiative also aligns with the government’s commitment to promoting inclusive economic growth by increasing the disposable income of lower-income households. By doing so, the government hopes to stimulate domestic consumption, improve living standards, and reduce poverty levels across the country.

This development has been widely welcomed by labor unions, civil society groups, and economic analysts, who have long argued that Nigeria’s tax structure needed to be more progressive. While the reform may result in short-term revenue adjustments, officials believe it will ultimately broaden the tax base and improve overall compliance. The government is expected to roll out additional policy measures in the coming months to support small businesses and simplify the tax filing process for all Nigerians.