Nigeria Revenue Service Exempts Low-Income Earners from Tax

Danjuma Manga, the Regional Administrator of the Nigeria Revenue Service, announced that under the 2025 tax reforms, individuals earning N800,000 or less annually will be exempt from personal income tax. This announcement was made during the 2026 symposium of the Forum of Heads of Federal Ministries, Departments and Agencies in Gombe.

The reforms aim to harmonize tax administration, improve compliance, promote fairness, and enhance the capacity of federal, state, and local governments to finance development. Manga explained that the reforms are based on four legislative changes affecting tax policy, legislation, and administration.

He emphasized that tax payment is a responsibility of citizens only when they earn income or realize gains. Additionally, individuals earning the national minimum wage of N70,000 monthly or less are also exempt from personal income tax.

The reforms also adjust the distribution of federally collected revenue, allocating 10 percent to the Federal Government, 55 percent to state governments, and 35 percent to local governments.