Nigerian workers are beginning to see higher take-home pay following reductions in Pay As You Earn (PAYE) deductions under newly implemented tax laws, the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has said.
Gatekeepers News reports that Oyedele disclosed the development in a post on X on Monday, citing feedback from employees who received their January 2026 salaries. He noted that early indications suggest the new tax framework is already easing the tax burden on salary earners, whose taxes are deducted at source.
The announcement comes as the federal government rolls out broad tax reforms aimed at improving disposable income, supporting economic growth, and simplifying tax administration nationwide.
What Oyedele is saying
Oyedele explained that the reduction in PAYE deductions reflects the initial impact of the recently enacted tax reforms.
“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 said. He emphasized that the reforms are especially beneficial for employees whose income taxes are deducted directly by their employers.
Background: The Tax Reforms
The federal government recently began implementing a new tax framework anchored on the Nigerian Tax Act (NTA) and the Nigerian Tax Administration Act (NTAA). The reforms were designed to simplify the tax system, reduce multiple taxation, and promote fairness across income groups.
•Oyedele previously said about 98% of Nigerian workers will pay either no PAYE or lower taxes under the new framework.
•Approximately 97% of small businesses will be exempt from corporate income tax, value-added tax, and withholding tax.
•Large companies will also benefit from reduced tax liabilities under the new laws.
He stressed that, contrary to public concerns, the reforms are structured to reduce the overall tax burden while improving compliance and efficiency.
Ensuring Correct Implementation
While initial reports show reduced PAYE deductions for January salaries, Oyedele emphasized that further engagement is needed to ensure proper implementation.
The Committee is partnering with the Joint Revenue Board to host a dedicated online session for payroll and tax administration stakeholders this week.
•The session will focus on correctly applying the new Personal Income Tax provisions.
•It targets HR Directors, Payroll Managers, Chief Financial Officers, Tax Managers, and other senior executives.
•The engagement aims to address implementation gaps and clarify compliance requirements for employers.
Oyedele said the session will help ensure employees fully benefit from the reforms while employers remain compliant with the updated legal framework.
What You Should Know
The implementation of the new tax laws began in January 2026, despite controversies over alleged alterations to gazetted copies of the legislation. The federal government’s fiscal reform agenda includes the Nigerian Tax Act (NTA) and the Nigerian Tax Administration Act (NTAA).
Previously, the government also commenced enforcement of the Nigerian Revenue Service Establishment Act and the Joint Revenue Service Establishment Act, which came into effect on June 26, 2025.
