Nigerians Earning Below ₦250,000 Exempted from New Tax Law -FG

Nigerians earning less than ₦250,000 (approximately \$170) per month will no longer pay income tax under the new tax reform approved by President Bola Tinubu.

Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms Taiwo Oyedele made the announcement during a tv interview on Thursday.

The new tax policy, set to take effect from January 2026 is aimed at easing the burden on low-income households and stimulating economic activity incountry.

Mr Oyedele said the reforms would ensure that the government “does not tax poverty,” stating that the move was part of a broader effort to create a more efficient and equitable tax system. He said households earning ₦250,000 or less per month are now officially recognised as poor and should not be taxed.

The reform will also reduce taxes for middle-income earners, estimated to earn between ₦1.8 million and ₦2 million monthly, while slightly increasing rates for high earners.

To determine the new poverty threshold, the committee analysed local living conditions, including family size and cost of living in rural and urban areas, rather than relying solely on global poverty metrics.