In a significant move to ease the economic burden on struggling Nigerians, the administration of President Bola Ahmed Tinubu has approved a bold fiscal reform—exempting individuals earning less than ₦250,000 monthly from paying income tax.
This landmark policy shift was announced by Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, during an interview on Channels Television’s Politics Today, shortly after President Tinubu signed four new tax-related bills into law on Thursday.
According to Oyedele, the fresh legislation is designed to stimulate economic activity, reduce poverty, protect vulnerable populations, and enhance tax fairness by ensuring that only those who can afford it contribute to national revenue.
> “How can anyone earning ₦30,000 monthly survive?” Oyedele asked rhetorically, emphasizing the need for empathy and equity in taxation. “We proposed that individuals earning up to ₦1 million annually—including allowances—should be exempt from income tax. This aligns with global best practices and promotes inclusivity.”
He explained that the committee arrived at the ₦250,000 monthly benchmark after rigorous assessment of the national poverty threshold. With an average Nigerian household consisting of five members and two income earners, the estimated sustainable household income falls within ₦120,000 to ₦130,000 per person per month—totaling ₦250,000.
> “If a household earns about ₦250,000 monthly, they can barely meet their basic needs. Certainly, they won’t be living in luxury, but they can manage. Such households are still poor and should not be taxed,” he asserted.
Oyedele further revealed that the government intends not only to shield the poor from undue taxation but also to tighten its grip on high-income earners and tax evaders, ensuring that the nation’s wealthiest contribute their fair share.
He also disclosed that only about 5% of Nigerians earn between ₦1.8 million and ₦2 million monthly, and while these individuals won’t be entirely exempt, their tax obligations will be slightly reduced to ease financial pressure.
> “This law may not put money in your pocket directly,” Oyedele noted, “but at least it ensures the government doesn’t take away what little you have if you’re poor.”
The new tax exemption policy is set to take effect from January 2026, giving sufficient time for implementation structures to be put in place. Economists and policy analysts have lauded the move as a step in the right direction, especially in a country where inflation and cost-of-living crises have pushed millions to the brink of survival.
As Nigerians await the practical impact of this reform, hopes are high that this measure will not only provide relief to the masses but also restore trust in the government’s fiscal policies.
PIONEER NEWS 