Nigerians earning below N250,000 monthly will be exempted from income tax under new laws signed by President Bola Tinubu, according to Taiwo Oyedele, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms.
Oyedele made the disclosure on Channels Television’s Politics Today shortly after the president approved four new tax bills on Thursday.
The Nigerian government has claimed the new laws aim to stimulate economic activity and track tax evaders, while protecting businesses and ensuring the government doesn’t tax poverty.
Oyedele explained that households earning N250,000 or less per month are now classified as poor and would not have to pay taxes.
“How can anyone earning N30,000 monthly survive? We propose that those earning up to N1million annually, including allowances, should be exempt from tax,” Oyedele had previously suggested, aligning with practices in other African countries to ensure fairness and inclusivity.
To arrive at the N250,000 monthly threshold, Oyedele’s committee debated the poverty line of an average Nigerian. They assumed an average family size of five people, with two working individuals earning around N120,000 to N130,000 per month. If the earnings are about N250,000, they can take care of themselves, albeit without luxury.
“We came up with a N120,000 or N130,000 per two people working in a household of five. If the earnings are about N250,000, they can take care of themselves. Of course, they are not going to have luxury, but at least they can take care of themselves. They are poor, and they shouldn’t pay taxes,” Oyedele stated.
The tax boss noted that about 5% of the Nigerian population earns N1.8million to N2million per month, and while their tax won’t be zero, it will be reduced from what they currently pay.
“This tax law will not give you cash in your pocket, but at least it won’t take your cash away if you are poor,” Oyedele added.
The new laws will take effect from January 2026, providing relief to low-income earners and promoting economic growth.
The post Tinubu Govt Says Nigerians Earning Below N250,000 Monthly Exempted From Income Tax appeared first on The Bureau Newspaper.
