Chairman of the Presidential Fiscal Coverage and Tax Reforms Committee, Taiwo Oyedele says Nigerian employees are starting to see larger take-home pay following a discount in Pay As You Earn (PAYE) deductions underneath the nation’s newly applied tax legal guidelines.
Oyedele acknowledged this in a publish on X on Monday, citing suggestions from staff who’ve obtained their January 2026 salaries.
In accordance with him, early indications recommend that the brand new tax framework is already easing the tax burden on employees, significantly wage earners whose taxes are deducted at supply.
The event comes because the federal authorities begins implementing sweeping tax reforms aimed toward bettering disposable revenue, supporting financial progress, and simplifying tax administration throughout the nation.
What Oyedele is saying
Oyedele stated the drop in PAYE deductions displays the early influence of not too long ago enacted tax reforms designed to scale back the tax burden on employees.
“We’re happy to notice the suggestions from employees who’ve obtained their salaries for January 2026 and confirmed a discount of their PAYE tax leading to larger take-home pay underneath the brand new tax legal guidelines,” Oyedele acknowledged.
He added that the reforms are significantly useful for workers whose revenue taxes are deducted immediately by their employers.
Backstory
The federal authorities not too long ago started implementing a brand new tax reform framework anchored on the Nigerian Tax Act (NTA) and the Nigerian Tax Administration Act (NTAA).
The reforms have been launched to simplify Nigeria’s tax system, cut back a number of taxation, and promote equity throughout revenue teams.
Oyedele maintained that, opposite to public considerations, the reforms are structured to make sure Nigerians pay much less tax total whereas bettering compliance and effectivity.
Extra Insights
Regardless of experiences of diminished PAYE deductions by employees who’ve obtained their January salaries, Oyedele stated additional engagement is required to make sure right implementation.
He disclosed that the Committee is partnering with the Joint Income Board to host a devoted engagement session for key stakeholders concerned in payroll and tax administration.
- The net session, scheduled for this week, will deal with making use of the brand new Private Earnings Tax provisions accurately.
- It’s focused at HR Administrators, Payroll Managers, Chief Monetary Officers, Tax Managers, and different senior executives.
- The session is anticipated to handle implementation gaps and make clear compliance necessities for employers.
Oyedele stated the engagement would assist guarantee staff absolutely profit from the reforms whereas employers stay compliant with the up to date authorized framework.
What it’s best to know
The implementation of the brand new tax legal guidelines started in January regardless of controversies surrounding alleged alterations to gazetted copies of the laws.
The federal authorities commenced enforcement of two new tax legal guidelines as a part of its broader fiscal reform agenda.
These embody the Nigerian Tax Act (NTA) and the Nigerian Tax Administration Act (NTAA).
Forward of the January implementation of the 2 legal guidelines, the federal government had final yr began implementing two different legal guidelines: the Nigerian Income Service Institution Act and the Joint Income Service Institution Act, which commenced on June 26, 2025.
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