Oyedele: 98% Of Nigerian Workers Set Free From PAYE Tax In Landmark Reform

According to Ireporter Online, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr. Taiwo Oyedele, has revealed that about 98 percent of Nigerian workers will be exempted from the Pay-As-You-Earn (PAYE) tax once the new tax regime takes effect in January.

Speaking at the 31st Nigerian Economic Summit (NES31) in Abuja, Oyedele explained that the new framework aims to protect low-income earners and poor Nigerians from personal income taxation while ensuring that high-net-worth individuals contribute more to national development. He described the approach as a fair model for modern economies, where those with greater means shoulder higher tax responsibilities.

Oyedele disclosed that small-scale and low-income businesses will also benefit from tax exemptions designed to support their growth and job creation. He mentioned plans to introduce tax-exempt stickers for nano enterprises such as street vendors, artisans, and petty traders to prevent them from being harassed by local authorities.

The committee’s reform agenda, he said, focuses on equity, efficiency, and transparency in Nigeria’s revenue system, with the goal of reducing inequality, improving fiscal governance, and boosting accountability in tax collection and spending.

“These reforms are not just about taxes,” Oyedele stated. “They’re about building trust, strengthening governance, and ensuring that public funds are used to benefit Nigerians.”

He added that the reforms, which form part of President Bola Tinubu’s broader fiscal policy strategy, are expected to enhance Nigeria’s credit rating, lower borrowing costs, and attract private-sector investments. Despite admitting that he had faced personal risks, including death threats, Oyedele said he remained committed to seeing the initiative through.

He further explained that the new system will not deprive states of revenue but instead improve their earnings through the Federation Account, assuring that no state would be worse off under the reformed structure. Oyedele emphasized that the reforms would replace regressive and outdated tax provisions—such as the controversial “wheelbarrow tax”—with fairer and more modern policies.

He also confirmed that the Joint Tax Board, representing all 36 states and the Federal Capital Territory, has expressed full support for the new framework. Oyedele concluded by noting that the committee is also focusing on expenditure reforms to ensure that tax revenues are managed transparently and deliver tangible benefits to Nigerians.