98% Of Nigerians To Be Exempt From Personal Income Tax By 2026

The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, says a sweeping tax overhaul will leave about 98% of Nigerian workers free from paying personal income tax once the new system begins in January 2026.

At a recent public engagement, he explained that the reforms aim to lighten the load on low-income earners and create a fairer tax structure.

Under the new rules, anyone earning the national minimum wage of ₦70,000 will pay no tax at all. Even those slightly above that range up to about ₦80,000 or ₦90,000 monthly will still fall within the exempt bracket.

Only individuals earning above ₦2 million per month will see an increase in their personal income tax obligations.

Oyedele also announced fresh incentives for small businesses, noting that enterprises with an annual turnover below ₦100 million will be fully exempt from VAT starting in 2026.