RELIEF FOR LOW INCOME EARNERS: NIGERIANS EARNING N250,000 OR LESS MONTHLY TO ENJOY TAX EXEMPTION FROM 2026

The Nigerian government has announced that individuals earning ₦250,000 or less per month will be exempted from paying taxes starting January 2026.

This new policy is part of sweeping fiscal reforms initiated by the Presidential Committee on Fiscal Policy and Tax Reforms, chaired by Taiwo Oyedele. The reform package was recently approved and signed into law by President Bola Ahmed Tinubu.

Speaking during an interview on Politics Today on Channels Television, Oyedele explained that the reform was designed specifically to protect poor and low-income Nigerians from the weight of tax obligations. He emphasized that this initiative will shield vulnerable households while promoting a more inclusive and efficient tax system.

“This is not about raising taxes,” Oyedele clarified. “It’s about improving economic activity, closing the tax collection gap, and making the entire system more people-centric.”

According to him, the new tax framework is structured to be “efficiency-driven, growth-focused, and people-centric,” with the ultimate goal of boosting Nigeria’s economy without overburdening its most financially fragile citizens.

While the reform will not directly increase disposable income, it is expected to stimulate spending and improve economic participation among low-income earners. The move also aligns with global best practices, where governments shield the poorest citizens from direct taxation to reduce inequality and foster inclusive growth.

The tax exemption policy will take effect from January 2026, giving stakeholders time to adjust to the new fiscal framework.

This reform marks a pivotal shift in Nigeria’s tax administration and reflects the Tinubu administration’s commitment to fiscal justice and equitable economic policies.