Abdulwahab Isa 
Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr. Taiwo Oyedele, has reaffirmed that up to 98 per cent of workers will be exempted from the Pay-As-You-Earn (PAYE) tax under the new tax laws scheduled to take effect in January 2026.
Oyedele disclosed this in Abuja at the ongoing 31st Nigerian Economic Summit (NES31).
He explained that the reforms are designed to protect low-income earners and those living at the poverty line.
According to him, the new tax regime will also reduce the corporate tax rate from 30 per cent to 25 per cent, while enhancing revenue generation and accountability in public finance. He noted that the federal government generated about N3.36 trillion in revenue last year.
“The more inequality you create, the more of a time bomb you have. You don’t want to imagine what can happen after that,” he warned.
“These reforms are designed to improve the governance system around revenue generation, including tax, and accountability as to how they’re spent. When Nigeria gets better, sovereign credit improves, revenue becomes sufficient to run government and meet expenses, and the cost of borrowing will come down, not only for the government, but also for the private sector. It is in our enlightened self-interest,” he said.
Oyedele also addressed misinformation surrounding the reforms, noting that public debates, though sometimes controversial, helped increase national awareness.
“When the controversy erupted about these reforms, it was actually the moment national awareness gained ground. Before then, if we said we were having an engagement, you’d be lucky to find 100 people in the room. After the controversy, no room could take the number of people who wanted to participate,” he explained.
He said the committee engaged every sector of the economy, relying on data from the National Bureau of Statistics (NBS) and the Gross Domestic Product (GDP) reports, to ensure inclusiveness.
“Everybody was captured in the law, including persons with disabilities and Nigerians in the diaspora. There was not a single state where we didn’t get input from stakeholders. That was how we co-created the solution to the problems we identified,” he said.
Oyedele commended President Bola Tinubu for adopting a participatory approach to the reforms. Unlike in the past, he said, the committee is not only responsible for drafting recommendations but also for co-implementing them with government.
“Our committee is the only one I’m aware of in Nigeria where you set up a committee and say, don’t give me a report of what to do, you sit with me and we implement it together. The idea now is that we have the laws, and we’re engaging with the people to understand their level of awareness and priorities for implementation,” he added.
