The Federal Government has said that the newly signed tax laws will bring major relief to poor Nigerians, small-scale businesses, and workers, as part of efforts to make the tax system fairer and more inclusive.
Chairman of the Presidential Fiscal Policy and Tax Reform Committee, Mr. Taiwo Oyedele, said the laws are “pro-poor” and were designed to protect low-income earners, micro-enterprises, and vulnerable Nigerians.
He said over one-third of Nigerian workers will now be exempted from Pay-As-You-Earn (PAYE) tax, while 90 per cent of small businesses will no longer pay corporate tax, VAT, or withholding tax.
“The three biggest expenses for Nigerian families—food, education, and healthcare—are now fully exempt from VAT,” Oyedele said.
He also explained that the reform includes new transparency mechanisms to show how public tax money is spent, helping to build public trust.
Dr. Zacch Adedeji, Chairman of the now-renamed Nigeria Revenue Service (NRS), said the six-month transition period before implementation in January 2026 is to allow full awareness and alignment with the fiscal calendar.
“The reform is not just about collecting more taxes; it’s about collecting smarter, fairer, and with the people in mind,” Adedeji added.
