Nigerians, especially low-income earners, are the primary beneficiaries of the tax reform laws set to take effect in January next year, as they are designed to bring relief to them, according to Taiwo Oyedele, chairman of the Presidential Committee on Fiscal Policy and Tax Reforms.
Oyedele clarified that, contrary to claims that the new rules are aimed at burdening Nigerians, they are, in fact, needed to stimulate growth and shared prosperity.
“Things are hard, and so these reforms want to make things easier for the Nigerian people, stimulate economic activities so we can all grow together, and there can be shared prosperity,” Oyedele said Tuesday on a televised programme on Channels.
“Small business owners are counting down to when these tax reforms will take effect so their tax burdens can go down.”
The tax chief added that part of the many gains of the reforms is the exemption of personal income tax for workers earning below N800,000 per annum, stressing that after deductions, including pension, rental, and other costs, Nigerians whose income is still below the threshold are tax exempt, advising the citizens to make use of the newly introduced tax calculator.
He also cited the provision of tax refund in the new laws, emphasising that if the government collected above the normal amount expected, a refund is necessary within 30 days, especially on Value Added Tax. Oyedele, however, clarified that if the refund claim is false, a fine of 200 per cent on the amount claimed will be imposed.
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Speaking on taxing individuals within the virtual assets space, such as Crypto or Forex, Oyedele explained that the new tax reforms ensure fairness to the extent that only when net gains of up to N150 million in aggregate are made can they be taxed.
Nigeria has embarked on an overhaul of its many tax laws and harmonised them into four in a move to widen its revenue base, increase its share as a percentage of gross domestic product to 18 per cent and provide succour for households whose spending power has been eroded.
But a 5 per cent surcharge on fuel is generating a heated debate among many Nigerians who believe the tax measure is unnecessary at a time many are reeling from the worst economic downturn in a generation.
Oyedele stated that the surcharge was not included in the tax laws and won’t begin in January 2026. He noted that the 5 per cent tax has been in existence since 2007 and can’t take effect until it’s gazetted.
He emphasised the importance of knowledge and transparency, urging Nigerians to pay more attention to what the government is doing and be deliberate in engaging with governance, especially at the local level.
“Taxation is meant to help the society if only it’s operated with transparency and honesty. But people need to have the right knowledge to demand accountability,” Oyedele said.
