The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has revealed that Nigerian workers are beginning to receive higher take-home pay following a reduction in Pay As You Earn (deductions under the newly implemented tax laws.
Oyedele disclosed this in a post on X on Monday, citing feedback from employees who received their January 2026 salaries.
According to him, early indications show that the new tax framework is already easing the tax burden on workers, especially those whose taxes are deducted at source by their employers.
“We are pleased to note the feedback from workers who have received their salaries for January 2026 and confirmed a reduction in their PAYE tax, resulting in higher take-home pay under the new tax laws,” Oyedele stated.
He added that the reforms are particularly beneficial for employees whose income taxes are deducted directly by their employers.
New Tax Reform Framework
The federal government recently began implementing a new tax reform framework anchored on the Nigerian Tax Act and the Nigerian Tax Administration Act. The reforms were introduced to simplify Nigeria’s tax system, reduce multiple taxation, and promote fairness across income groups.
Oyedele had previously stated that about 98% of Nigerian workers will either pay no PAYE tax or lower taxes under the new framework.
He also noted that approximately 97% of small businesses will be exempt from corporate income tax, value-added tax (VAT), and withholding tax, while large companies will also benefit from reduced tax liabilities.
Despite public concerns over the reforms, Oyedele maintained that the changes are structured to ensure Nigerians pay less tax overall while improving compliance and efficiency.
