The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has announced that Small and Medium Enterprises (SMEs) in Nigeria will begin paying lower taxes from January 2026, when the new tax law comes into effect.
Speaking during a fireside chat titled “The New Tax Law and You” at the 24th Annual Conference of Women in Management, Business and Public Service (WIMBIZ) in Lagos, Oyedele explained that the reforms were designed to make the system more people-focused and growth-driven.
He said the committee aimed to create a fairer tax structure that reduces the burden on workers and small business owners while promoting efficiency and inclusive development.
“From January next year, people will pay less tax. Currently, someone earning ₦30,000 or ₦40,000 still pays tax, but that will change. Minimum wage earners will be exempted, and anyone earning up to ₦500,000 per month will also not pay income tax,” Oyedele said.
He added that only individuals earning above ₦2 million monthly would experience a small adjustment in their tax payments, estimated between ₦2,000 and ₦3,000.
Oyedele further noted that the upcoming tax law will introduce about 50 new exemptions and reliefs, focusing on low-income earners, small businesses, and middle-income taxpayers.
He emphasized that the overall goal of the reforms is to simplify the tax system, enhance fairness, and encourage investment-led economic growth across Nigeria.
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