By Arabinrin Aderonke
Public debate is healthy for democracy. However, when discussions about economic policy drift away from verifiable facts, it becomes necessary to restore clarity. Recent remarks by former minister Rotimi Amaechi suggesting that Nigeria’s new tax laws increase the burden on low-income earners do not align with the actual provisions of the reform.
Let us examine the facts.
Beginning January 1, 2026, Nigeria’s revised tax framework introduces a more progressive system designed to protect low-income earners. Individuals earning at or around the national minimum wage are exempt from personal income tax. In practical terms, this means many workers at the lower end of the income scale will pay zero tax.
Under the new structure, taxable income up to approximately ₦800,000 falls within a 0% bracket. Only income above that threshold attracts graduated rates. That is not an increase in burden; it is targeted relief.
Equally important is the treatment of small businesses. The exemption threshold for Company Income Tax has been expanded significantly. Businesses with annual turnover up to ₦100 million now qualify as small companies and are exempt from paying Company Income Tax. This is a substantial shift from previous limits and represents a deliberate effort to ease pressure on micro, small, and medium enterprises.
These changes reflect a broader principle: shield the vulnerable, broaden compliance among higher earners, and strengthen revenue collection mechanisms without squeezing those already struggling.
Policy disagreements are legitimate. But suggesting that the reforms raise taxes on low-income earners misrepresents what the law actually provides. If anything, the reforms remove many of them from the tax net entirely.
Nigeria’s fiscal challenges require serious engagement, not alarmist interpretations. Constructive criticism should focus on implementation efficiency, transparency, and accountability, areas where meaningful debate can yield improvements.
Arabinrin Aderonke Atoyebi is the Technical Assistant on Broadcast Media to the Executive Chairman of the Nigeria Revenue Service
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