The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has said Nigerian workers are already seeing improvements in their take-home pay following recent changes to the country’s tax regime.
Oyedele made the disclosure on Monday via a post on X, citing feedback from employees who have received their January 2026 salaries.
According to him, early reports indicate a noticeable reduction in Pay As You Earn (PAYE) deductions under the newly implemented tax laws.
He explained that the reforms are beginning to ease the tax burden on workers, particularly those whose income taxes are deducted at source by their employers.
“We have received encouraging feedback from workers who got their January 2026 salaries and confirmed that their PAYE deductions have reduced, leading to higher take-home pay under the new tax laws,” Oyedele said.
The development follows the federal government’s rollout of a new tax reform framework anchored on the Nigerian Tax Act and the Nigerian Tax Administration Act.
The reforms are aimed at simplifying the tax system, addressing multiple taxation, and ensuring a fairer distribution of tax obligations across income groups.
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Oyedele reiterated that the impact of the reforms would be widespread, noting that about 98 per cent of Nigerian workers are expected to pay either no PAYE tax or significantly lower taxes.
He also said roughly 97 per cent of small businesses would be exempt from corporate income tax, value-added tax (VAT), and withholding tax, while larger companies would benefit from reduced tax liabilities.
Despite public debates surrounding the reforms, Oyedele maintained that the measures were designed to reduce the overall tax burden on Nigerians while strengthening compliance and efficiency in tax administration.