At least nine out of every 10 Nigerians will no longer have to pay the Pay as You Earn (PAYE) tax Taiwo Oyedele, the chairman, presidential fiscal policy and tax reform committee has said. He also added that Nigerians will start enjoying benefits of new tax laws, beginning from January 2026.
Oyedele who spoke at the ongoing Nigerian Economic Summit (NES31) in Abuja on Tuesday, said that about 98 percent of the Nigeria’s population will no longer pay the Pay As You Earn (PAYE) tax.
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He emphasied that the new tax laws are targeted at protecting the low income earners or those at the poverty line.
“From January 2026, you will feel the impact. If you earn a salary, when you are paid your salary at the end of January 2026, for 97, 98 percent of Nigerians, they will either no longer pay PAYE, or they’ll pay less PAYE.
“That is about 33 percent of workers in the public and private sector combined, will no longer pay PAYE, because they will be exempted. The remaining 2 percent plus will pay more,” he said.
President Bola Tinubu, in June 2025 signed the four (4) Tax Reform Bills into law. These laws include the Nigeria Tax Act (NTA), The Nigeria Tax Administration Act (NTAA), The Nigeria Revenue Service Act (NRSA) and the Joint Revenue Board Act (JRBA).
The Acts comprehensively overhaul the Nigerian tax landscape to drive economic growth, increase revenue generation, improve the business environment and enhance effective tax administration across the different levels of government.
Oyedele, speaking further, clarified the implementation of capital gains tax, stating that its introduction at 30 percent will enhance the value of firms operating in Nigerian.
He also explained that investors who sell shares worth up to N150 million dollars annually will not pay capital gains tax, a policy that exempts more than 99 per cent of investors.
“We have eliminated the special rate for capital gains tax. It now aligns with the income tax rate of the payer. If a small business pays zero per cent corporate tax, its capital gains tax is also zero per cent. Likewise, low-income earners exempted from PAYE will pay no capital gains tax.
“The valuation of any business is the present value of future cash flows. These reforms will significantly enhance the value of every company in Nigeria, such that the higher value will more than compensate for the additional tax,” he added.
“It is hard, if not impossible, to hide your spending even if you hide your income,” Oyedele said. “If you earn income, you must pay tax.”
