By John Umeh
In a significant move aimed at easing the financial burden on low-income Nigerians, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has announced that individuals earning ₦250,000 or less monthly will no longer be required to pay personal income tax. This landmark announcement was made as part of the federal government’s broader plan to reform Nigeria’s tax system and improve equity in tax administration.
Speaking during a public engagement on Thursday, Oyedele emphasized that the new exemption threshold is designed to protect vulnerable citizens and ensure that taxation becomes more progressive. “It is unfair for people who are barely surviving on ₦250,000 per month or less to bear the same tax burden as high-income earners,” he said. “This policy shift will bring much-needed relief to millions of hardworking Nigerians.”
The new policy aligns with the federal government’s ongoing efforts to expand the tax net by focusing more on high-income earners and corporate entities, while shielding the financially vulnerable. Oyedele noted that many Nigerians in this income bracket currently struggle with inflation, rising living costs, and limited social safety nets.
He also explained that the tax reform committee is working with stakeholders to develop a simplified and more efficient tax system that encourages compliance and reduces administrative bottlenecks. “We are building a fairer tax structure where citizens are taxed according to their capacity to pay, not just for the sake of collection,” he added.
The announcement has already sparked positive reactions from civil society organizations and labor unions, who have long advocated for tax justice and economic relief for low-income workers. Analysts say this move could also increase disposable income and stimulate local demand, especially in an economy still recovering from inflation shocks and sluggish growth.
Oyedele assured Nigerians that the new exemption would be implemented in collaboration with state tax authorities and that further updates would be communicated in due course. The new policy is expected to take effect in the next fiscal year, following legislative backing and harmonization with existing tax laws.
As Nigeria seeks to balance revenue generation with social responsibility, this decision signals a commitment to a more inclusive and equitable economic strategy—one that prioritizes the welfare of its most vulnerable citizens.
