The Presidential Fiscal Policy and Tax Reforms Committee (PFPTC) in Nigeria held an interactive session with journalists, influencers, and public analysts to address misconceptions about the country’s newly enacted tax reform laws.
Chaired by Taiwo Oyedele, the committee stated that the reforms aim to simplify the tax system, reduce burdens on low-income earners, and promote fairness without increasing taxes for the average citizen.
Oyedele stressed that the reforms are aimed at fairness, efficiency, and simplicity – ensuring that the tax system supports investment, job creation, and sustainable growth.
He clarified that while the poor are not being taxed under the new laws, the average citizen will pay less, not more in taxes.
He added that the reforms will help businesses to save costs through harmonisation, enhanced input credits, faster tax refunds, lower withholding tax rates, and planned reduction in corporate tax rate.
“Small companies are exempted from corporate income tax, charging of VAT on their transactions and withholding tax. The informal sector will benefit from incentives to join the formal economy rather than being penalised thereby enhancing their opportunity for growth.
“These reforms are designed to benefit all Nigerians. Let us work together to ensure effective implementation and position ourselves for the better days ahead of us,” he said.
Mr. Oyedele noted that while it is not unusual for tax reforms to be misunderstood anywhere in the world, deliberate misreporting and uninformed analyses are harmful to the collective interest given that the reforms are designed to benefit ordinary Nigerians, secure long-term economic stability and inclusive growth for the country.
Sharing the key highlights of the new tax reform laws, Oyedele explained that under the Personal Income Tax provisions, low-income earners including those earning the national minimum wage, are exempted from tax.
“The average income earners will pay less tax while high-income earners (about the top 3% of the population) will contribute progressively more, up to 25% of their income. This is a much lower rate than the top rates in countries such as Ghana & Kenya at 35% and South Africa at 45%,” he explained.
Businesses will enjoy broader input credits on their assets and overhead to lower costs. Basic items such as food, education and health services are taxed at 0% while rent and transportation are exempt. These measures are expected to result in lower prices for consumers. Additionally, small businesses are exempted from charging Value Added Tax (VAT) ensuring that they are not overburdened with excessive tax obligations.
He revealed that there is an ongoing process to reduce over 60 different taxes and levies to fewer than 10, easing compliance and curbing proliferation of multiple charges. Contrary to the misconception about imposing a higher tax burden or introducing new taxes, he said the current administration is reducing both the number of taxes and the burden on citizens and businesses.
He noted that some taxes introduced by previous administrations have been reversed or suspended including the 5% levy on airtime and data, cybersecurity levy on bank transfers, the carbon tax on single-use plastics, and the excise tax on vehicles
Commenting on the issue of Tax Identification linking with bank accounts, Oyedele emphasized that the requirement is not a new policy but a continuation of the 2020 Finance Act, designed to streamline economic activities and ensure compliance only for accounts used for business or income-generating purposes, while clarifying that personal accounts remain unaffected and no automatic taxation will be applied to bank inflows.
He also clarified that the new tax laws do not introduce taxes on individuals who were not previously taxable. Online content creators, influencers, income from virtual assets, and other income generating activities have always been subject to tax under the old Personal Income Tax Act. The new tax laws only provide clarity, and ensure fairness by allowing deductions for losses where applicable. Income earned as a gift rather than as payment for a transaction is not taxable.
During the event, the Presidential Fiscal Policy and Tax Reforms Committee unveiled the Excellence in Tax Reform Reporting Award, a landmark initiative to recognise and reward journalists and online influencers who provide balanced, accurate, and impactful reporting on Nigeria’s ongoing tax reforms.
The award seeks to strengthen constructive public discourse, counter misinformation, and elevate journalism that explains reforms in ways citizens can trust and understand.
The award is open to all Nigerian journalists across print, broadcast, and online platforms, as well as digital influencers, bloggers, and podcasters.
Entry requirements include works published between July 1 and December 31, 2025, in English, Pidgin, Hausa, Igbo, or Yoruba, that explains, analyses, or reports on the tax reform. Entries in local languages must be submitted along with the English translations. Videos or podcasts should not exceed 10 minutes.
Awards Structure:
1st Prize: ₦10 million
2nd Prize: ₦5 million
3rd Prize: ₦3 million
The Top 20 finalists will receive ₦1m consolation prize each with plaques. Gadgets and training fellowships may also be provided.
Applications will open via the official portal by the end of the year on fiscalreforms.ng.