The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, announced that if a new tax bill is approved by the National Assembly, wealthy Nigerians earning N100 million or more monthly will face a 25% personal income tax rate.
During a breakout session at the ongoing 30th Nigeria Economic Summit in Abuja, Oyedele emphasized that approximately 90% of current taxpayers should not be taxed, advocating for a more equitable tax system in Nigeria.
He stressed the importance of balancing the tax burden between lower-income earners and ensuring that wealthier individuals contribute fairly to government revenue.
“If you earn N100 million a month, we are taking up to 25% from the rich people. That’s because we need to balance the books,” Oyedele stated.
The fiscal policy expert indicated that the government is committed to ensuring that the right individuals pay taxes, with his committee actively working toward this goal. The proposed changes are expected to take effect from January 2025, pending legislative approval.
For middle-income earners making N1.5 million or less per month, personal income tax obligations will decrease, while those earning higher amounts will see incremental increases in their tax rates, eventually reaching 25%. Lower-income earners would be fully exempt from personal income tax.
The reforms also aim to alleviate the tax burden on businesses. Oyedele remarked, “Today, whatever VAT you (businesses) pay on assets—whether you’re building a factory or buying laptops—you bear it. This increases your costs, and therefore your pricing will go up. Once our reforms are implemented, you get back 100% credit on services and assets.”
In addressing concerns about tax compliance, Oyedele noted that nearly 90% of taxpayers are individuals who should not be paying taxes.
