Get Ready: Nigerians to Pay 25% Tax on Monthly Earnings as Tinubu’s Govt Proposes New

Abuja – The Federal Government, through the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has proposed a 25% tax on wealthy Nigerians earning N100 million or more monthly.

This announcement was made during the 30th Nigeria Economic Summit, held in Abuja on Monday, October 15, 2024.

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Oyedele emphasized the need for a fairer tax system, noting that the current structure burdens low-income earners while the wealthy contribute relatively less.

He stated, “Almost 90% of people paying taxes today are those who should not be paying. 97% of those in the informal sector should be exempt from taxes.”

The new tax policy aims to shift the burden towards wealthier Nigerians, particularly those earning N100 million and above, with a 25% personal income tax rate. This reform is expected to take effect in January 2025, pending approval by the National Assembly.

For middle-income earners, those earning ₦1.5 million or less per month, the government plans to reduce personal income tax obligations, while higher earners will see a gradual increase in tax rates. Lower-income earners will be exempt entirely.

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The proposed tax policy is part of broader discussions on fiscal reforms aimed at addressing revenue shortfalls and ensuring that Nigeria’s wealthiest contribute more to national development.

The changes are part of the government’s efforts to streamline multiple taxation policies and improve the fairness of the tax system.