Nigerian Workers Enjoy Increased Take-Home Pay Following Tax Reform

Taiwo Oyedele, chairman of the Presidential Fiscal Policy Tax Reform Committee, disclosed that Nigerian workers have started receiving higher take-home pay due to a reduction in PAYE under the newly implemented tax law. The feedback from employees in January 2026 salaries indicates that the new tax framework has eased the tax burden on workers, especially those whose taxes are deducted at the source of employment.

The tax reform, anchored on the Nigerian Tax Act and Nigerian Tax Administration Act, aims to simplify Nigeria's tax system, reduce multiple taxation, and promote fairness across income groups. Oyedele stated that approximately 98% of Nigerian workers will either pay no tax or lower tax under the new framework, with around 97% of small businesses being exempt from corporate income tax.

Despite public concerns, the reform is expected to ensure that Nigerians pay less tax overall, improve compliance, and enhance efficiency.