Nigerian households earning N250,000 or less per month have been classified as poor and exempted from paying taxes.
This was disclosed by Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms after President Tinubu signed the new four tax bills into law.
According to Oyedele, the objectives of the new laws, which would take effect from January 2026, were not intended to increase taxes but to stimulate economic activity in the country and track tax evaders. The new laws would also protect businesses and ensure that the government doesn’t tax poverty, adding that the new laws are efficiency-driven, growth-focused, and people-centric.
Oyedele stated thus:
“This tax law will not give you cash in your pocket, but at least it won’t take your cash away if you are poor.”
“Nobody earning below N250,000 would have to pay taxes because they don’t even have enough”.
“We have eliminated the tax component for people at the bottom, we have reduced for people at the middle, and we have increased slightly for people at the top.