The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, says Nigerian workers are now taking home higher salaries following a reduction in pay-as-you-earn (PAYE) deductions under the new tax laws.
Oyedele made this known on his X handle on Monday, citing feedback from employees who have received their January 2026 salaries. He had earlier stated that about 98 per cent of Nigerian workers would either pay no PAYE tax or pay lower taxes under the new framework.
According to him, early indications show that the new tax regime is already easing the tax burden on workers, particularly 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,” he said.
Oyedele added that the reforms are especially beneficial to employees whose income taxes are deducted directly by their employers.
“To ensure that relevant individuals charged with implementing these changes for the benefit of employees in their organisations are well informed, the Presidential Fiscal Policy and Tax Reforms Committee is hosting a session for key stakeholders in collaboration with the Joint Revenue Board,” he said.
He explained that the session, scheduled for Wednesday, is targeted at HR directors, payroll managers, chief financial officers, tax managers, and other senior executives responsible for employee compensation and payroll tax compliance.
The Federal Government recently began implementing the new tax reform framework on January 1, anchored on the Nigerian Tax Act, the Nigerian Tax Administration Act, and other related laws.
The reforms were introduced to simplify Nigeria’s tax system, reduce multiple taxation, and promote fairness across income groups. However, the new regime has faced strong public resistance amid concerns that it could worsen the cost-of-living crisis.
