The Chairman of the Presidential Fiscal Coverage and Tax Reforms Committee, Taiwo Oyedele, has stated latest cuts in Pay As You Earn deductions are already translating into increased take-home pay for Nigerian staff.
Oyedele disclosed this in a publish on X on Monday after reviewing suggestions from workers who had obtained their January 2026 salaries.
He defined that early responses confirmed the newly applied tax legal guidelines have been starting to ease the burden on staff, particularly salaried workers whose taxes are deducted straight at supply.
In line with him, the decrease PAYE deductions mirror the preliminary positive factors of the continued tax reforms aimed toward decreasing staff’ tax obligations.
He stated, “We’re happy to notice the suggestions from staff who’ve obtained their salaries for January 2026 and confirmed a discount of their PAYE tax leading to increased take-home pay beneath the brand new tax legal guidelines.”
Oyedele added that the adjustments have been significantly useful for workers whose revenue taxes are dealt with by means of employer payroll techniques.
Regardless of the optimistic suggestions, he famous that extra engagement was wanted to make sure the reforms have been being utilized accurately throughout organisations.
He revealed that the Committee is working with the Joint Income Board to organise a particular engagement session for professionals concerned in payroll and tax administration.
The digital assembly, scheduled for later this week, will concentrate on correct utility of the brand new Private Revenue Tax provisions.
The session is focused at HR Administrators, Payroll Managers, Chief {Financial} Officers, Tax Managers and different senior executives, and is predicted to deal with implementation gaps whereas clarifying employers’ compliance obligations.
Oyedele stated the initiative would assist assure that staff benefit from the full advantages of the reforms whereas employers stay throughout the bounds of the up to date authorized framework.
The event follows the Federal Authorities’s rollout of sweeping tax reforms aimed toward boosting disposable revenue, supporting {economic} progress and simplifying tax administration nationwide.
Implementation of the brand new tax framework, anchored on the Nigerian Tax Act and the Nigerian Tax Administration Act, started in January.
The reforms search to streamline Nigeria’s tax system, cut back a number of taxation and promote equity throughout revenue {groups}, regardless of controversies over alleged alterations to gazetted copies of the legal guidelines.
Earlier than the January rollout, the federal government had already commenced enforcement of two different legal guidelines — the Nigerian Income Service Institution Act and the Joint Income Service Institution Act — which took impact on June 26, 2025.
Oyedele has beforehand stated the brand new framework would considerably cut back the tax burden on most Nigerians.
He acknowledged that about 98 per cent of staff would both pay no PAYE tax or pay much less beneath the revised system, whereas roughly 97 per cent of small companies could be exempt from company revenue tax, value-added tax and withholding tax.
In line with him, even giant firms stand to learn from decrease tax liabilities beneath the brand new legal guidelines.
Oyedele maintained that the reforms have been designed to make sure Nigerians in the end pay much less tax general whereas strengthening compliance and effectivity throughout the tax system.