Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Dr. Taiwo Oyedele, has announced that about 98% of Nigerians will either stop paying tax or have their Pay As You Earn (PAYE) rates drastically reduced when the new tax regime takes effect in January 2026.
Speaking during a discussion session at the Nigerian Economic Summit in Abuja, Oyedele explained that the reform is designed to ease the financial burden on low- and middle-income earners, ensuring a fairer and more inclusive tax system.
He revealed that roughly 33% of public and private sector workers will be completely exempted from PAYE deductions, while those earning between that 33% and 98% range will pay significantly less. “The remaining two to two-and-a-half percent represent the high-income earners, the rich people we can identify,” he said, drawing applause from the audience.
