The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has disclosed that Nigerian workers are now earning increased take-home pay after a cut in Pay As You Earn (deductions under the newly enforced tax laws).
Oyedele made this known in a post on X on Monday, referencing responses from staff who collected their January 2026 wages.
According to him, early signals suggest that the new tax structure is already reducing the tax pressure 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 especially helpful for employees whose income taxes are taken directly by their employers.
The federal government recently commenced the rollout of a new tax reform framework built around the Nigerian Tax Act and the Nigerian Tax Administration Act. The reforms were designed to streamline Nigeria’s tax system, curb multiple taxation, and enhance fairness across income groups.
Oyedele had earlier said that about 98% of Nigerian workers will either pay no PAYE tax or reduced taxes under the new framework.
He also explained that roughly 97% of small businesses will be exempt from corporate income tax, value-added tax (VAT), and withholding tax, while large companies will also enjoy lower tax burdens.
In spite of public worries about the reforms, Oyedele insisted that the changes are arranged to ensure Nigerians pay less tax overall while boosting compliance and efficiency.
