By Huldah Shado
The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has stated that Nigerians earning ₦250,000 or less monthly will be exempt from paying taxes under the new tax laws.
Speaking on Channels Television’s Politics Today on Thursday, June 26, shortly after President Bola Tinubu signed four new tax bills into law, Oyedele said households within that income bracket are classified as poor.
He explained that the new laws, which take effect from January 2026, are not aimed at increasing taxes but at stimulating economic growth and curbing tax evasion.
“This tax law will not give you cash in your pocket, but at least it won’t take your cash away if you are poor,” Oyedele said.
He clarified that individuals earning below ₦250,000 monthly are considered not to have enough and will therefore not pay taxes.
“We have eliminated the tax component for people at the bottom, reduced it for those in the middle, and slightly increased it for those at the top,” he added.
Oyedele said that people earning ₦1.8 to ₦2 million monthly fall within the middle-income group and will experience reduced taxes.
He noted that this group represents about 5% of the Nigerian population.
On how the committee defined poverty, he explained, “We debated this question. We said: ‘Who is a poor person in Nigeria?’”
He noted that while the World Bank uses a benchmark of $2.15 per day, some Nigerians who earn less still survive because they grow their own food and do not pay for transportation.
“I lived and grew up in the village,” he said. “So we had to factor that in and draw our own poverty line for Nigeria.”