The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has said recent reductions in Pay As You Earn (PAYE) deductions are already translating into improved take-home pay for Nigerian workers.
Oyedele disclosed this on Monday via a post on X, citing feedback from employees who received their January 2026 salaries under the newly implemented tax laws.
According to him, early reports indicate that many workers, particularly those whose taxes are deducted directly by their employers, are benefiting from lower PAYE charges.
“We are encouraged by the feedback from workers who have received their January 2026 salaries and confirmed a reduction in PAYE deductions, resulting in higher take-home pay,” Oyedele said.
He explained that the changes are part of broader fiscal reforms designed to ease the tax burden on workers while improving efficiency in tax administration.
The federal government recently commenced implementation of a new tax reform framework anchored on the Nigerian Tax Act and the Nigerian Tax Administration Act. The reforms aim to simplify the tax system, eliminate multiple taxation and promote fairness across income brackets.
Oyedele reiterated that the reforms were structured to protect low-income earners, noting that the majority of Nigerian workers would either pay less tax or none at all.
“About 98 per cent of workers are expected to pay lower PAYE or be completely exempt under the new framework,” he said.
He added that small businesses are also key beneficiaries of the reforms, with an estimated 97 per cent projected to be exempt from corporate income tax, value-added tax and withholding tax, while larger firms are expected to enjoy reduced tax obligations.
Addressing public concerns surrounding the reforms, Oyedele maintained that the policy direction is aimed at ensuring Nigerians pay less tax overall, while strengthening compliance and improving government revenue collection.
