The chairman of the Presidential Fiscal Policy and Tax Reform Committee, Dr. Taiwo Oyedele, has announced that low-income Nigerians and small businesses will benefit from 50 tax exemptions when the new tax laws come into effect on January 1, 2026.
Oyedele disclosed this in a series of posts on his verified X handle, saying the reforms were designed to reduce the tax burden on the masses and boost economic participation for small-scale earners.
According to him, individuals earning the national minimum wage and those with annual gross income of up to ₦1.2 million will be exempted from Pay-As-You-Earn (PAYE) tax under the new regime.
He added that Nigerians earning up to ₦20 million annually will also enjoy reduced PAYE obligations, while gifts will no longer be taxed.
“From 1 January 2026, the new tax laws will provide many reliefs and exemptions for low-income earners, average taxpayers, and small businesses,” Oyedele wrote.
Oyedele listed tax-free items that will take effect next year to include: pension contributions ; National Health Insurance Scheme (NHIS) payments ; National Housing Fund (NHF) contributions ; Interest on loans for owner-occupied homes ; Life insurance and annuity premiums ; and Rent relief covering 20% of annual rent (up to ₦500,000)
He added that compensation for loss of employment up to ₦50 million, as well as pension funds and assets under the Pension Reform Act, will be completely tax-exempt.
The proposed tax reliefs also cover stamp duties, meaning several financial transfers will not attract charges once the policy takes effect. Exemptions include: electronic transfers below ₦10,000 ; salary payments ; intra-bank transfers and transfers involving government securities and company shares
Oyedele insisted the new measures will support economic growth, ease financial pressure on citizens and businesses, and promote investment confidence.
The reforms come as part of President Bola Tinubu’s tax modernisation drive aimed at improving revenue efficiency and reducing the burden on struggling households.
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