Nigerian workers are beginning to take home more pay following a reduction in Pay As You Earn (PAYE) deductions under newly implemented tax laws, according to the head of the country’s fiscal reform committee.
Taiwo Oyedele, chairman of the Presidential Fiscal Policy and Tax Reforms Committee, said early feedback from employees who received their January 2026 salaries showed lower PAYE deductions and higher net earnings.
In a post on social media platform X on Monday, Mr Oyedele said the initial response suggested the reforms were already easing the tax burden on workers, particularly those whose income taxes are deducted directly by their employers.
“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.
The federal government recently began implementing a new tax reform framework based on the Nigerian Tax Act and the Nigerian Tax Administration Act. The changes are aimed at simplifying the tax system, reducing multiple taxation and improving fairness across income groups.
Mr Oyedele has previously said that about 98% of Nigerian workers would either pay no PAYE tax or pay less under the new system.
He also said around 97% of small businesses would be exempt from corporate income tax, value-added tax and withholding tax, while larger companies would also see reduced tax liabilities.
The reforms have generated public debate, but Mr Oyedele insists they are designed to ensure Nigerians pay less tax overall while improving tax compliance and administrative efficiency.
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