The Federal Government has assured Nigerians that its newly enacted tax reform laws will not increase the financial burden on citizens, particularly low-income earners and small businesses.
Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, gave the assurance on Friday in Lagos during an interactive session with journalists, social media influencers, and public analysts.
Oyedele said the clarification became necessary following what he described as “deliberate misreporting and uninformed analyses” of the reforms.
According to him, the measures were designed to make Nigeria’s tax system simpler, fairer, and more business-friendly while ensuring that the poor and average earners are shielded from unnecessary hardship.
“From the onset, our objectives have been clear—reduce the tax burden on the masses, harmonise and simplify tax rules, and create a globally competitive system. Our approach is people-centric, growth-focused, and efficiency-driven,” he said.
Speaking on the key features of the new tax laws,which were ; personal income tax; VAT reliefs ; Tax Identification Numbers ; Informal Sector Reliefs ; and Tax Harmonisation.
Explaining on personal income tax, Oyyedele said Nigerians earning the national minimum wage will pay no tax, while average earners will pay less.
He added “only the top 3% of high-income earners will be taxed up to 25% of their income—a rate lower than Ghana’s 35% and South Africa’s 45%.”
On VAT Reliefs, Oyyedele said, Food, education, and healthcare are taxed at 0%, while rent and transportation remain exempt.
According to him,small businesses are not required to charge VAT.
On Tax Identification Numbers (TIN), he said it is Mandatory only for income-generating or business-related accounts, not for personal savings.
Oyedele stressed that inflows into accounts would not be automatically taxed.
Speaking on informal Sector Reliefs, Oyyedele said small companies with an annual turnover of N100 million or below are exempted from corporate income tax, VAT, and withholding tax.
On Tax Harmonisation, the Chairman disclosed that over 60 different levies will be cut down to fewer than 10 to ease compliance and stop multiple taxation.
Oyedele added that some controversial levies introduced by previous governments had been scrapped, including the 5% levy on airtime and data, the cybersecurity levy on bank transfers, the carbon tax on single-use plastics, and excise tax on vehicles.
The tax chief debunked claims that online content creators, influencers, and virtual asset earners were being newly targeted, explaining that such incomes had always been covered under the Personal Income Tax Act.
He insisted that the reforms were “pro-people and pro-growth,” emphasising that businesses would now enjoy faster tax refunds, lower withholding tax rates, and a planned reduction in corporate tax rates.
“The poor are not being taxed under the new laws. The average citizen will pay less, not more. Small businesses are exempted, and the informal sector will benefit from incentives rather than penalties,” he assured.
On the way forward, Oyyedele noted that the Committee would continue engaging stakeholders and collaborating with relevant agencies to ensure transparent and seamless implementation of the reforms.
“Let us work together to ensure effective implementation and position ourselves for better days ahead,” he urged.
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