The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has confirmed that under Nigeria’s new tax laws, households earning ₦250,000 or less per month are now officially classified as poor and will be exempt from paying taxes.
Oyedele, a former tax lead at PriceWaterhouseCoopers (PwC), revealed this on Politics Today, a Channels Television programme, on Thursday—just hours after President Bola Tinubu signed four new tax bills into law.
Appointed by the President in July 2023, Oyedele described his two-year tenure as both challenging and significant. He explained that the new laws, which will take effect in January 2026, aim not to increase tax burdens but to stimulate economic activity and curb evasion.
“These laws won’t put money in your pocket, but they’ll ensure the government doesn’t take it from you if you’re poor,” he said.
He clarified that no individual earning below ₦250,000 monthly would pay taxes, as such income is insufficient for a basic standard of living. “We’ve removed the tax burden for those at the bottom, reduced it for the middle class, and slightly increased it for the top earners,” he stated.
Oyedele said households earning between ₦1.8 million and ₦2 million monthly would see a tax reduction, not elimination, adding that they represent about five percent of Nigeria’s population.
To define the poverty line, the committee relied on national realities rather than solely on World Bank or UN benchmarks. Oyedele explained:
“We considered that many Nigerians don’t earn $2.15 daily but still survive by producing their own food or avoiding transport costs. I lived in the village—I know how that works.”
Based on a model of a five-person household supported by two earners, the committee calculated that ₦250,000 per month provides for basic needs without luxury. “Such families are poor,” he said, “and should not be taxed.”
He also noted that Nigeria currently collects only 30% of its potential tax revenue. The goal of the reforms, he added, is to close the remaining 70% gap through fairer, more efficient systems.