The Federal Government has said Nigerian workers are already recording increased take-home pay following a reduction in Pay As You Earn (PAYE) deductions under the newly implemented tax reforms.

Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr Taiwo Oyedele, disclosed this on Monday in a post on X, citing feedback from workers who received their January 2026 salaries.

According to Oyedele, early indications show that the new tax framework is easing the tax burden on employees, particularly those whose taxes are deducted at source by their employers.

“We are pleased to note the feedback from workers who have received their salaries for January 2026 and confirmed a reduction in their PAYE tax, resulting in higher take-home pay under the new tax laws,” he said.

He explained that the reforms are especially beneficial to salaried workers under the PAYE system, as deductions have been adjusted to reflect the new tax regime.

The Federal Government recently commenced the implementation of a new tax reform framework anchored on the Nigerian Tax Act and the Nigerian Tax Administration Act. The reforms are aimed at simplifying the tax system, reducing multiple taxation, and ensuring fairness across different income groups.

Oyedele had earlier stated that about 98 per cent of Nigerian workers would either pay no PAYE tax or pay significantly less under the new framework.

He also disclosed that approximately 97 per cent of small businesses would be exempt from corporate income tax, value-added tax (VAT), and withholding tax, while larger companies would also benefit from reduced tax obligations.

Addressing public concerns surrounding the reforms, Oyedele maintained that the new tax laws are designed to reduce the overall tax burden on Nigerians while improving efficiency, compliance, and revenue administration.

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