Starting January 2025, Nigeria’s wealthiest citizens will be subjected to a Personal Income Tax (PIT) rate of 25%, as announced by Mr. Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, during the ongoing #NES30 conference in Abuja.
Speaking at a session titled “Fiscal and Monetary Policy Reforms: Removing Barriers to Private Sector Investment,” Oyedele highlighted that the proposed tax bills, currently before the National Assembly, aim to reduce the tax burden on low-income earners while increasing taxes on higher earners. These reforms are designed to create a more equitable tax system, with the new law slated for implementation in January 2025.
“For those earning 1.5 million naira or more per month, the tax rate will rise incrementally, reaching 25% for the highest earners,” Oyedele explained, while lower-income individuals would be exempt from paying personal income tax entirely. He also discussed the significance of these reforms for businesses, noting that corporate income tax will be reduced from 30% to 25%.
In addition, Oyedele emphasized the need to simplify Nigeria’s complex tax system, which currently includes around 60 official taxes and over 200 unofficial taxes. He stated that any policy negatively affecting citizens’ lives should be revised to better serve the people.