The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has said that Nigerian workers are now receiving higher take-home salaries as a result of a reduction in their Pay As You Earn (PAYE) deductions under the new tax laws.
Oyedele took to his X handle on Monday, to announce the feedback from employees who have received their January 2026 salaries.
He had earlier said that about 98 per cent of Nigerian workers will either pay no PAYE tax or lower taxes under the new framework.
He said early indications show that the new tax framework is already easing the tax burden on workers, especially those whose taxes are deducted at source by their employers.
According to him, “We are pleased to note the feedback from workers who have received their salaries for January 2026 and confirmed a reduction in their PAYE tax, resulting in higher take-home pay under the new tax laws,” He added that the reforms are particularly beneficial for employees whose income taxes are deducted directly by their employers.
“To ensure that relevant individuals charged with the responsibility to implement these changes for the benefit of employees in their organisations are well informed, the Presidential Fiscal Policy and Tax Reforms Committee is hosting a session for the key stakeholders in collaboration with the Joint Revenue Board.”
He said the session scheduled for Wednesday is for HR Directors, Payroll Managers, Chief Financial Officers, Tax Managers and Other Senior Executives responsible for the management of employee compensation and payroll tax compliance.
The federal government recently began implementing a new tax reform framework anchored on the Nigerian Tax Act and the Nigerian Tax Administration Act. The reforms were introduced to simplify Nigeria’s tax system, reduce multiple taxation, and promote fairness across income groups.
However, the new regime has met with stiff resistance from the public who fear the new tax framework will worsen their cost of living crisis.