₦airaland Forum

By Jide Ajia


Nigerians earning less than N250,000 monthly will be exempt from income tax under new laws, according to Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms.

Oyedele made the disclosure on Channels Television’s Politics Today shortly after President Bola Tinubu approved four new tax bills on Thursday.

He stated that households earning N250,000 or less per month are now classified as poor.

Appointed by the President in July 2023, Oyedele described his two-year tenure leading the tax reform committee as both eventful and challenging.

He said that the objectives of the new laws, which would take effect from January 2026, were not intended to increase taxes but to stimulate economic activity in the country and track tax evaders.

Oyedele stated that the new laws would also protect businesses and ensure that the government doesn’t tax poverty, adding that the new laws are efficiency-driven, growth-focused, and people-centric.

He said, “This tax law will not give you cash in your pocket, but at least it won’t take your cash away if you are poor.”

He said nobody earning below the amount would have to pay taxes because they don’t even have enough.

“We have eliminated the tax component for people at the bottom, we have reduced for people at the middle, and we have increased slightly for people at the top.

“That middle, we estimated it at about N1.8 to N2m a month. If you are earning that amount and below, your tax will not be zero but it will reduce from what you are paying today,” he stated, noting that those who earn this amount are about 5% of the total Nigerian population.

The tax boss said to arrive at a decision, his committee debated the poverty line of an average Nigerian.

Oyedele said, “We debated this question; we said: ‘Who is a poor person in Nigeria? First, we started with data like the World Bank and the UN will tell you two dollars, fifteen cents a day per person means you are at the poverty line but there are people who do not earn two dollars a day but they are not poor because they produce the food that they eat and they do not pay for transportation. I lived and grew up in the village.

“So, we had to factor that in. We drew our own (poverty) line for Nigeria on the basis of an average of five people per family: two people working if they are lucky, taking care of the five. When we did the maths, it gave us an amount, and that was what we used in determining the income below which nobody should pay taxes.

“We came up with a N120,000 or N130,000 per two people working in a household of five. If the earnings are about N250,000, they can take care of themselves. Of course, they are not going to have luxury, but at least they can take care of themselves. They are poor, and they shouldn’t pay taxes. When we did the maths, it gave us an amount, and that was what we used in determining the income below which nobody should pay taxes.

“We came up with a N120,000 or N130,000 per two people working in a household of five. If the earnings are about N250,000, they can take care of themselves. Of course, they are not going to have luxury, but at least they can take care of themselves. They are poor, and they shouldn’t pay taxes.”

Oyedele stated that Nigeria currently collects only about 30 per cent of what the country should be receiving in taxes, noting that the objective of the new tax laws is to close the 70 per cent gap

iwaeda:
How many people are earning 250k per month, that will be exempted, what of informal taxes by agbero and owomida.

“No nation ever grew more prosperous by taxing its citizens beyond their capacity to pay.” - former British Prime Minister Margaret Thatcher

Islie:
https://punchng.com/nigerians-earning-below-n250000-monthly-exempted-from-tax-oyedele/?amp

XtraFortunes:
Sad but true



Even those earning 500k per month are still poor in reality

iwaeda:
How many people are earning 250k per month, that will be exempted, what of informal taxes by agbero and owomida.

Osiris12:
Relief for the 30k monthly hustlers
Xoxoxoxoxo

iwaeda:
How many people are earning 250k per month, that will be exempted, what of informal taxes by agbero and owomida.

ivandragon:
'Sounds' good, but the devil is always in the details and the reality on ground...

So, let's do the comparative analysis shall we...

1. Base (period, value etc)


So, are Nigerians better off socioeconomically under bat?

Your guess is as good as whatever you have surmised...

jetwonder:

My company with the small stipend they pay, them still the collect tax

TallNigerian:
I love this. That means 80% of civil servants are poor

iwaeda:
How many people are earning 250k per month, that will be exempted, what of informal taxes by agbero and owomida.

ivandragon:
'Sounds' good, but the devil is always in the details and the reality on ground...

So, let's do the comparative analysis shall we...

1. Base (period, value etc)

A. Comparative period 2014 and 2025 (2014 is used or 2 reasons. 1. That was when apc came to power. 2. The people in power today protested against the socioeconomic conditions of 2014)

B. Monetary value (using fx rates)
N250,000 today is equivalent to N34,000 in 2014.

So, a brief random comparative analysis would reveal the following...

In 2014, N34,000 would get you about 380 litres of pms.
In 2025, N250,000 gets you about 266 litres of pms.


In 2014, N34,000 got you about 4+ bags of rice.
In 2025, N250,000 gets you 3+ bags of rice.

In 2014, N34,000 got 10 bags of NPK fertilizer.
In 2025, N250,000 gets 5 bags of NPK fertilizer.

In 2014, N34,000 got 55 small baskets of tomatoes.
In 2025, N250,000 gets 42 small baskets of tomatoes.

So, are Nigerians better off socioeconomically under bat?

Your guess is as good as whatever you have surmised...

Islie:
https://punchng.com/nigerians-earning-below-n250000-monthly-exempted-from-tax-oyedele/?amp

ivandragon:
'Sounds' good, but the devil is always in the details and the reality on ground...

So, let's do the comparative analysis shall we...

1. Base (period, value etc)

A. Comparative period 2014 and 2025 (2014 is used or 2 reasons. 1. That was when apc came to power. 2. The people in power today protested against the socioeconomic conditions of 2014)

B. Monetary value (using fx rates)
N250,000 today is equivalent to N34,000 in 2014.

So, a brief random comparative analysis would reveal the following...

In 2014, N34,000 would get you about 380 litres of pms.
In 2025, N250,000 gets you about 266 litres of pms.


In 2014, N34,000 got you about 4+ bags of rice.
In 2025, N250,000 gets you 3+ bags of rice.

In 2014, N34,000 got 10 bags of NPK fertilizer.
In 2025, N250,000 gets 5 bags of NPK fertilizer.

In 2014, N34,000 got 55 small baskets of tomatoes.
In 2025, N250,000 gets 42 small baskets of tomatoes.

So, are Nigerians better off socioeconomically under bat?

Your guess is as good as whatever you have surmised...