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Oyedele Drops Bombshell: ‘Workers Earning Less Than N250,000 Will Pay Zero Tax’
Nigerians earning less than ₦250,000 monthly will no longer be subject to income tax under a newly approved tax reform, according to Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms.....KINDLY READ THE FULL STORY HERE▶
Speaking during an interview on Channels Television’s Politics Today, Oyedele made the disclosure shortly after President Bola Tinubu signed four new tax bills into law on Thursday.
He explained that households with monthly earnings of ₦250,000 or less are now officially classified as poor under the new fiscal framework.
Oyedele, who was appointed by President Tinubu in July 2023, described his two-year leadership of the reform committee as both challenging and impactful.
He clarified that the objective of the new tax laws—which are expected to take effect from January 2026—is not to increase the tax burden but to drive economic growth, improve efficiency, and reduce poverty by ensuring that low-income earners are shielded from taxation.
“This tax reform may not put extra money in your pocket, but it ensures that, if you’re poor, the government doesn’t take money away from you,” he said. “Anyone earning below ₦250,000 monthly won’t pay income tax because their income simply isn’t enough.”
According to Oyedele, the tax structure has been redesigned to eliminate taxes for low-income earners, reduce the burden on middle-income households, and slightly increase taxes for high earners.
He defined the middle-income band as those earning between ₦1.8 million and ₦2 million monthly—roughly 5% of the population. While they will still pay taxes, he said, their rates will be reduced compared to current levels.
Explaining how the threshold was determined, Oyedele said the committee debated the definition of poverty in the Nigerian context.
“We looked beyond the standard World Bank benchmark of $2.15 per day,” he said. “There are people in rural areas who earn less than that but are not classified as poor because they grow their own food and don’t pay for transportation. I grew up in the village—I understand that reality.”
The committee, he said, instead based its definition on an average Nigerian household of five, with two income earners supporting the family.
“When we crunched the numbers, we arrived at about ₦120,000 to ₦130,000 combined monthly earnings per two earners. For a household to just get by without luxury but with basic dignity, ₦250,000 was the threshold,” he said.
“People at that level are still poor, and taxing them would be unjust. That’s why we’re removing them from the tax net altogether.”
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