₦airaland Forum

Image123:
You can't easily wake a man pretending to sleep. Most of the people don't want to understand it. They want it to fail, they want to use misinformation to see if it can fail, or if they can cause problems or riots with it. Poor man pikin dey middle dey fight for big man tax.

There is nothing they can do.

Every of their efforts to frustrate the government will all end in nought

By 2027, they will all realize the futility of their shenanigans


You can imagine the lambanus lienus fans, suddenly El-rufai is now a saint since he is in ADC

suddenly Amaechi is now a saint since he is in ADC

suddenly Aregbesola is now a saint since he is in ADC


suddenly Atiku is now a saint since he is in ADC


suddenly David Mark is now a saint since he is in ADC

Tinubu till 2031.

NothingDoMe:
Lol they expect you to declare.

And if i end up not declaring accurately what then happens?

I do a lot of purchase for people.

What if some send me money to help them purchase something.

Will the money get taxed?

If the policy is not properly managed it may lead to breakdown of law and order.

The government has paid some persons to suppress the truth about the implications of these taxes.
One of the implications is that it's going to hinder people's financial growth.
If you decide to work harder to earn more, you pay more money to government thereby slowing your savings and financial growth rate.
Also the tax rate is very high for a country with very low income per capital.
Secondly, you benefit next to nothing from whatever is removed from your money as tax.
Bad roads(more car expenses),
Low quality but expensive health care
High Insecurity(affects cost of food)
You generate most of the power u use
Lack of free/quality education
Lack of transparency and embezzling of public funds
And more

That answer for question no 23 get k leg.

Tax law we haven't seen. Which one are they implementing? The real one passed by the national assembly or the Oluwole one gazetted by the Oluwole master himself?

99thEnemy:
Source:
https://irs.gm.gov.ng/docs/national/NIGERIA_TAX_ACT_2025.pdf

I have tried to ignore all this last minute desperate "PR" by obviously Govt compensated well meaning folks

At the heart of it this TAX law is beautiful on its own. However, with today's reality in Nigeria it is Evil and basically elitist.

How can you devalue the purchasing power of a nation, effectively almost wiping out the middle class(the main economic engine of growth) just for the goal of expanding the tax net?

Let me highlight the elitist flaw in your example in Q22. It's stated a Tax allowance on rent to the tune of. #500,000 for someone with annual income of N6M. This is incorrect!
The new tax law allows a rent relief of a max of N500,000 or 20% of rent paid, whichever is lower in value applies!!! So to get a 500,000 rent relief you have to have rent amount in the neighbourhood of #2.5M!

My question how can you spend more than almost half of your income on rent and not remain in poverty

This tax law is basically taxing poverty with no provision or attempt to promote collective growth Q.E.D

Most of the rich already have a shell or holding company that shields their wealth, Politicians should publish their asset and income declaration forms let's hear how much they remit in taxes.

Simply put, grow the economy, then tax prosperity. This wuru wuru to the answer can only fly in Nigeria!

Mrexcell:
And if i end up not declaring accurately what then happens?

Maybe try to match your declaration with your bank transactions. That's why your NIN is your tax ID. 😄

stokfrick:
The government has paid some persons to suppress the truth about the implications of these taxes.
One of the implications is that it's going to hinder people's financial growth.
If you decide to work harder to earn more, you pay more money to government thereby slowing your savings and financial growth rate.
Also the tax rate is very high for a country with very low income per capital.
Secondly, you benefit next to nothing from whatever is removed from your money as tax.
Bad roads(more car expenses),
Low quality but expensive health care
High Insecurity(affects cost of food)
You generate most of the power u use
Lack of free/quality education
Lack of transparency and embezzling of public funds
And more

Continue to lament

You don't even t know the tax rate, (both the previous and the new one), but you can come online to spew opinion on what you don't know. It's a shame.

Tinubu till 2031.

Image123:
Is that how you heard it's done in saner clime, or that's what that lambarism croner promised you?

Can you intelligently say how much the person earning $600 was paying as tax before, and how much such person is to pay now? All these ignorance over what?

Oga laptop boy, does your tax laws meat this criteria as postulated by Mr adebayo, While reacting to the new tax policy, he expressed a strongly critical view. He described it as fundamentally flawed, both in principle and in practice, and suggested that it risks diverting attention from more pressing economic priorities.

He argued that effective taxation should meet four essential criteria. First, it must serve as a stimulus—encouraging production and investment, rather than discouraging them. A tax should energize the economy, creating incentives for growth rather than acting as a barrier.

Second, it must be fairly distributive. Resources collected through taxation should flow where they are most needed. For instance, taxing luxury properties could fund affordable housing; levies on imported high-end vehicles could support public transportation infrastructure. The principle, he suggested, is that taxation should act as a tool to adjust social and economic imbalances.

Third, it should generate sustainable revenue over the long term, not offer only short-term gains that fail to address structural needs.

He also emphasized transparency and simplicity. Tax laws should be understandable to ordinary citizens and practical to implement. A system that requires small traders, such as street vendors, to consult lawyers or navigate complex legal frameworks is, in his view, both unfair and ineffective.

Further talking, he said, "If you have been following the last three months, everybody is thinking, are they going to seize my money in the bank? Have you not been following it? Tinubu’s administration is a disaster because the President used to be an accountant. At least in the area of finance, you ought to have a bit of a clue. He used to be an auditor too."

grandstar:
Fantastic information.

No 23 needs some correction.

It is actually 100m and not 50m.

I still give your post a 9.9 out of 10.

He forgot to include that in addition to the PAYE tax that workers had already been paying prior, they will be paying this new tax law income tax at the end of the year. For example,

For s senior federal civil servant whose salary is 500k per month

He is already paying PAYE of 14%
Which is a whooping 780k per annum

Then in addition with the new tax law he will be made to pay extra income tax of 18% on the remaining take home salary of 5.2m

So at the end of the day his take home will eventually be 4.2m naira!

So a total of 32% will be taken of from his total income. 🙀💀

Dogalmighty17:
Does anybody still understand this? The more they explain the more confusing it becomes.

Taxation is expression of law into figures. Just like it's very difficult for the untrained to understand law. It's equally very difficult for the untrained to understand tax laws. The right thing to do is to go to experts to educate you.

Do you know that the charges that banks charge and you let go, companies and the rich engage experts and they recover millions for them through wrong bank charges.

NothingDoMe:
Maybe try to match your declaration with your bank transactions. That's why your NIN is your tax ID. 😄

Even if the deposits and transfers are money for purchase of goods and services and not all my own personal profits?

VeeVeeMyLuv:
He forgot to include that in addition to the PAYE tax that workers had already been paying prior, they will be paying this new tax law income tax at the end of the year. For example,

For s senior federal civil servant whose salary is 500k per month

He is already paying PAYE of 14%
Which is a whooping 780k per annum

Then in addition with the new tax law he will be made to pay extra income tax of 18% on the remaining take home salary of 5.2m

So at the end of the day his take home will eventually be 4.2m naira!

So a total of 32% will be taken of from his total income. 🙀💀

The old PAYE structure will be scrapped unless your employer wants to chop your money.

The old system has been replaced by the new.

If they retain PAYE, it would be at this new rates.

Image123:
You can't easily wake a man pretending to sleep. Most of the people don't want to understand it. They want it to fail, they want to use misinformation to see if it can fail, or if they can cause problems or riots with it. Poor man pikin dey middle dey fight for big man tax.

I’m Pro-Tinubu but let’s not always play politics with everything because I can see you are already pointing accusing fingers. In a country where the vast majority is unemployed, you have the gut to bring up laws to tax them. It’s not as if we’ve not been paying taxes(VAT) before now. For a poor individual who’s struggling with life and fighting to give himself a better life that the government have failed to provide through doing things like betting (yes, most Nigerian youths are now professional gamblers), scamming, ponzi and many other undignifying channels to make money yet you still want to tax them despite not providing for them what are considered to be the most basic things. In a country where things work and the majority is gainfully employed and independent, paying of taxes would naturally not be a burden to anyone.
You said poor men children are fighting the fight of the rich but do you think a rich man would be moved or would complain if you take #330k from his #2.2M as tax?

The real rich people aren’t complaining and that’s what shows they are truly rich and can afford it.
Anyone complaining about the laws is truly poor. I am complaining because I, for instance, am making my money without even a single ounce of help from the government, what makes the government think he is entitled to the money he made zero contribution to? And no, I can’t afford to give you a whopping #330k out of my 2.2M, and this, my friend, is an indication that I am one of the masses because a true wealthy individual wouldn’t be moved by that meager sum.

The whole law should be made simple and clear, tax only those you employed.

grandstar:
The old PAYE structure will be scrapped unless your employer wants to chop your money.

The old system has been replaced by the new.

If they retain PAYE, it would be at this new rates.

Okay
That's good

mrvitalis:
You want to tax income on people who earns less than 600 dollars per year

When poverty lines is 3 dollars or 1095 dollars per year

No body earning below 3500 dollars should pay tax in Nigeria none

But they said these people have been paying tax since inception but the new tax law will reduce their tax.

Techsinnovative:
I have tried to ignore all this last minute desperate "PR" by obviously Govt compensated well meaning folks

At the heart of it this TAX law is beautiful on its own. However, with today's reality in Nigeria it is Evil and basically elitist.

How can you devalue the purchasing power of a nation, effectively almost wiping out the middle class(the main economic engine of growth) just for the goal of expanding the tax net?

Let me highlight the elitist flaw in your example in Q22. It's stated a Tax allowance on rent to the tune of. #500,000 for someone with annual income of N6M. This is incorrect!
The new tax law allows a rent relief of a max of N500,000 or 20% of rent paid, whichever is lower in value applies!!! So to get a 500,000 rent relief you have to have rent amount in the neighbourhood of #2.5M!

My question how can you spend more than almost half of your income on rent and not remain in poverty

This tax law is basically taxing poverty with no provision or attempt to promote collective growth Q.E.D

Most of the rich already have a shell or holding company that shields their wealth, Politicians should publish their asset and income declaration forms let's hear how much they remit in taxes.

Simply put, grow the economy, then tax prosperity. This wuru wuru to the answer can only fly in Nigeria!

This is a lie. A complete lie.

Let me explain this in simple terms.

If you earn ₦6 million in a year:

1. The first ₦800,000 is not taxed at all, so you’re left with ₦5.2 million.

2. You’re allowed a rent relief of up to ₦500,000, which reduces the taxable amount to ₦4.7 million.

3. There are other reliefs like pension and NHF that can reduce it even further, but let’s ignore those for now.
(Reliefs simply mean amounts removed before tax is calculated.)

4. From the ₦4.7 million, the first ₦2.2 million is taxed at 15%, which equals ₦330,000.

5. The remaining ₦2.5 million is taxed at 18%, which comes to ₦450,000.

6. Total tax payable is ₦330,000 + ₦450,000 = ₦780,000.

7. In reality, the tax will be less than ₦780,000 once other reliefs are included.

---

Now compare this to the old tax system, where:

* Almost every part of your income was taxed,
* From the first ₦300,000 upward,

So the claim that people earning ₦6 million are being overtaxed is simply not correct. In fact, they will pay less tax.

Let’s stick to facts and stop spreading wrong information.

Tinubu till 2031.

mrvitalis:
You want to tax income on people who earns less than 600 dollars per year

When poverty lines is 3 dollars or 1095 dollars per year

No body earning below 3500 dollars should pay tax in Nigeria none

In

creativejagaban:
This is a lie. A complete lie.

Let me explain this in simple terms.

If you earn ₦6 million in a year:

1. The first ₦800,000 is not taxed at all, so you’re left with ₦5.2 million.

2. You’re allowed a rent relief of up to ₦500,000, which reduces the taxable amount to ₦4.7 million.

3. There are other reliefs like pension and NHF that can reduce it even further, but let’s ignore those for now.
(Reliefs simply mean amounts removed before tax is calculated.)

4. From the ₦4.7 million, the first ₦2.2 million is taxed at 15%, which equals ₦330,000.

5. The remaining ₦2.5 million is taxed at 18%, which comes to ₦450,000.

6. Total tax payable is ₦330,000 + ₦450,000 = ₦780,000.

7. In reality, the tax will be less than ₦780,000 once other reliefs are included.

---

Now compare this to the old tax system, where:

* Almost every part of your income was taxed,
* From the first ₦300,000 upward,

So the claim that people earning ₦6 million are being overtaxed is simply not correct. In fact, they will pay less tax.

Let’s stick to facts and stop spreading wrong information.

Tinubu till 2031.

Here is the exact provision and wording as quoted in the new Nigerian Tax Act, 2025 regarding Rent Relief Allowance for individuals:

Exact Rent Relief Allowance Provision (as in the Tax Act)

“…rent relief of 20% of annual rent paid, subject to a maximum of ₦500,000, whichever is lower, provided that the individual accurately declares the actual amount of rent paid and other relevant information as may be prescribed by the relevant tax authority.”

This language appears in the section of the Nigeria Tax Act, 2025 that defines eligible deductions when computing an individual’s taxable income.

At this point i give up This generation truely deserves the meodicre leaders we have! Have you bothered to read the gazetted tax law PDF? its publicly available by the way. If it proves too technical to read i would suggest using chatgpt to process and decode it into laymans english.

i would love to see the look on your face next year when you file a 500k deduction claim on a 1M Rent payment and you get flagged for a tax audit due to false declaration

For others who are actually here to listen and learn like me on how to adapt and position in this unfolding situation i would suggest:

1. dont believe all you read online except the source is a credible and knowledgable source! even then ask questions and use your brain
2. Most small businesses will require services of tax consultants and accounting advisors. I believe demand created will surface some form of cheap offer of these services sooner or later
3. In the meantime use chatgpt and other Ai resources to get understanding and create a personal plan. The rich pay little or minimum tax by having a tax strategy that limits their exposure to tax (Crazy enough theres even a TED talk on this!)

As it is the full impact of this law wont be felt until filing/deductions are demaded by March 2027. By then elections will be over and if this government is still in power ........... una go see something!

stokfrick:
The government has paid some persons to suppress the truth about the implications of these taxes.
One of the implications is that it's going to hinder people's financial growth.
If you decide to work harder to earn more, you pay more money to government thereby slowing your savings and financial growth rate.
Also the tax rate is very high for a country with very low income per capital.
Secondly, you benefit next to nothing from whatever is removed from your money as tax.
Bad roads(more car expenses),
Low quality but expensive health care
High Insecurity(affects cost of food)
You generate most of the power u use
Lack of free/quality education
Lack of transparency and embezzling of public funds
And more

While we have someone in NL telling us that Nigeria is a poorly taxed country compared to other nations.....!!!

You can imagine people's wicked and mischievous audacity!!!!!

VeeVeeMyLuv:
He forgot to include that in addition to the PAYE tax that workers had already been paying prior, they will be paying this new tax law income tax at the end of the year. For example,

For s senior federal civil servant whose salary is 500k per month

He is already paying PAYE of 14%
Which is a whooping 780k per annum

Then in addition with the new tax law he will be made to pay extra income tax of 18% on the remaining take home salary of 5.2m

So at the end of the day his take home will eventually be 4.2m naira!

So a total of 32% will be taken of from his total income. 🙀💀

From the look of things even those supporting the PBAT income tax policy dont even undersand it...

Since they say its an annual thing, they will tell nigerians by november how they intend to stop such double income taxaction...

Techsinnovative:
Here is the exact provision and wording as quoted in the new Nigerian Tax Act, 2025 regarding Rent Relief Allowance for individuals:

Exact Rent Relief Allowance Provision (as in the Tax Act)

“…rent relief of 20% of annual rent paid, subject to a maximum of ₦500,000, whichever is lower, provided that the individual accurately declares the actual amount of rent paid and other relevant information as may be prescribed by the relevant tax authority.”

This language appears in the section of the Nigeria Tax Act, 2025 that defines eligible deductions when computing an individual’s taxable income.

At this point i give up This generation truely deserves the meodicre leaders we have! Have you bothered to read the gazetted tax law PDF? its publicly available by the way. If it proves too technical to read i would suggest using chatgpt to process and decode it into laymans english.

i would love to see the look on your face next year when you file a 500k deduction claim on a 1M Rent payment and you get flagged for a tax audit due to false declaration

For others who are actually here to listen and learn like me on how to adapt and position in this unfolding situation i would suggest:

1. dont believe all you read online except the source is a credible and knowledgable source! even then ask questions and use your brain
2. Most small businesses will require services of tax consultants and accounting advisors. I believe demand created will surface some form of cheap offer of these services sooner or later
3. In the meantime use chatgpt and other Ai resources to get understanding and create a personal plan. The rich pay little or minimum tax by having a tax strategy that limits their exposure to tax (Crazy enough theres even a TED talk on this!)

As it is the full impact of this law wont be felt until filing/deductions are demaded by March 2027. By then elections will be over and if this government is still in power ........... una go see something!

You have not said anything.

Infact you said nothing plus insult.

So enjoy your clu*lessness.

The 500,000 I quoted for rent relief was based on your earlier assumption that rent for the person earning 6m perannum is 2.5m of which min(500,000 or 20% of 6m) is 500,000.

So continue to live in f***ls paradise and continue to spread misinformation and grandstand.

Put out your calculations here and show what a person earning 6m perannum will pay as tax using old tax law and the new tax law. It is as simple as that. Fact.

Don't conjecture. Don't be afraid to speak fact and figure

Tinubu till 2031.

creativejagaban:
You have not said anything.

Infact you said nothing plus insult.

So enjoy your clu*lessness.

The 500,000 I quoted for rent relief was based on your earlier assumption that rent for the person earning 6m perannum is 2.5m of which min(500,000 or 20% of 6m) is 500,000.

So continue to live in f***ls paradise and continue to spread misinformation and grandstand.

Put out your calculations here and show what a person earning 6m perannum will pay as tax using old tax law and the new tax law. It is as simple as that. Fact.

Don't conjecture. Don't be afraid to speak fact and figure

Tinubu till 2031.

Good at least we are getting somewhere, you have accepted you're ignorant of the topic on hand. The rest is easy: You arent to be taken seriously

Techsinnovative:
Good at least we are getting somewhere, you have accepted youre ignorance ignorant. The rest is easy: You arent to be taken seriously

You have still not said anything, except insult.

I just told you to speak fact and figure. Why are you scared.

A tax law you have not read, and you are arguing with someone who has read it inside out. no be juju be dat

Tinubu till 2031.

mrvitalis:
Yes that's how it's done
In the UK 12k pounds are tax free
In the US 15k dollars
In South Africa over 5600 dollars equivalent are bench marke

No, that's not how it is done. You conveniently forgot the main factors, minimum wage and cost of living. "No body earning below 3500 dollars should pay tax in Nigeria none"

Comparison of how much you can earn without paying income tax, and minimum wage amounts for the United States, United Kingdom, South Africa, and Nigeria.

1. United States (Federal) Tax-Free Threshold
In the U.S., federal income tax does not apply until your taxable income exceeds the “standard deduction.”
Single filers: $15,750
Married filing jointly: $31,500
Income up to these amounts is effectively not subject to federal income tax because the standard deduction reduces your taxable income to zero.
(Note: Many taxpayers may also owe payroll taxes (Social Security and Medicare) and potentially state/local income taxes.)
Minimum Wage
The federal minimum wage remains $7.25 per hour. Federal minimum: 7.25 × 40 × ~4.33 weeks ≈ $1,257/month. Let's not remove rent as it will be disastrous.
Higher state example (e.g., $15/hr): 15 × 40 × ~4.33 ≈ $2,598/month (Actual depends on location.)
Many states and local jurisdictions have higher minimum wages (e.g., around $15–$17+ per hour in places like California, New York, and Washington, D.C.).
Note: Additional state/local taxes may apply separately.
Initial tax rate after the standard deduction 10%. Most people in the minimum wage bracket are taxed. You can multiply by 12.

2. United Kingdom Tax-Free Threshold (Personal Allowance)
Individuals can earn up to £12,570 per year without paying UK income tax. Above this threshold, income tax begins (typically at 20% up to the next band).
Approximate monthly tax-free amount:
£12,570 ÷ 12 ≈ £1,048/month (before tax starts)

Minimum Wage (National Living / Minimum Wage)

National Living Wage (21+): ~£12.71/hour. Approximate monthly (assuming 40 hrs/week):

12.71 × 40 × ~4.33 ≈ £2,202/month for adult NLW. (2,961.54 US dollars). Let's not remove rent as it will be disastrous.
Younger age bands have lower minimums (e.g., 18–20: ~£10.85/hour).
Initial tax rate after the standard deduction 20%. All people in the minimum wage bracket are taxed. You can multiply by 12.

3. South Africa Tax-Free Threshold
South Africa uses an annual tax threshold, below which you do not pay income tax:
If under age 65: R95,750/year. Approximate monthly tax-free amount:
R95,750 ÷ 12 ≈ R7,979/month (if this is your only income, you pay no income tax; amounts above this are taxed progressively).
Minimum Wage
The national minimum wage is R23.19 per hour. Approximate monthly minimum wage (40 hrs/week):
23.19 × 40 × ~4.33 ≈ R4,016/month. (243.42 US dollars).
Initial tax rate after the standard deduction 18%

4. Nigeria Tax-Free Salary Threshold (Personal Income Tax)
Under Nigeria’s 2025 Tax Reform Acts, the tax-free (zero income tax) threshold has been substantially increased: Individuals earning up to ₦800,000 per year (556.68 US dollars) will pay no personal income tax. This exemption applies after allowable reliefs and deductions (including rent relief up to ₦500,000/year and other statutory deductions ).
Minimum wage earners (and even slightly above) will be fully exempt from personal income tax under the new system.
Context: Prior to this reform, Nigeria’s lowest taxable band started at much lower thresholds with progressive rates beginning around ₦300,000/year. Under the new law, the first taxable band only begins above ₦800,000.
Minimum Wage
The national minimum wage in Nigeria is ₦70,000 per month (effective from May 1, 2024). Approximate monthly minimum wage:
₦70,000/month (this is already the statutory minimum). 584.51 US dollars in a year.
This marks a major change intended to relieve low- and middle-income earners in Nigeria and simplify the tax system.
Initial tax rate after the standard deduction 15%

Image123:
No, that's not how it is done. You conveniently forgot the main factors, minimum wage and cost of living. "No body earning below 3500 dollars should pay tax in Nigeria none"

Comparison of how much you can earn without paying income tax, and minimum wage amounts for the United States, United Kingdom, South Africa, and Nigeria.

1. United States (Federal) Tax-Free Threshold
In the U.S., federal income tax does not apply until your taxable income exceeds the “standard deduction.”
Single filers: $15,750
Married filing jointly: $31,500
Income up to these amounts is effectively not subject to federal income tax because the standard deduction reduces your taxable income to zero.
(Note: Many taxpayers may also owe payroll taxes (Social Security and Medicare) and potentially state/local income taxes.)
Minimum Wage
The federal minimum wage remains $7.25 per hour. Federal minimum: 7.25 × 40 × ~4.33 weeks ≈ $1,257/month. Let's not remove rent as it will be disastrous.
Higher state example (e.g., $15/hr): 15 × 40 × ~4.33 ≈ $2,598/month (Actual depends on location.)
Many states and local jurisdictions have higher minimum wages (e.g., around $15–$17+ per hour in places like California, New York, and Washington, D.C.).
Note: Additional state/local taxes may apply separately.
Initial tax rate after the standard deduction 10%. Most people in the minimum wage bracket are taxed. You can multiply by 12.

2. United Kingdom Tax-Free Threshold (Personal Allowance)
Individuals can earn up to £12,570 per year without paying UK income tax. Above this threshold, income tax begins (typically at 20% up to the next band).
Approximate monthly tax-free amount:
£12,570 ÷ 12 ≈ £1,048/month (before tax starts)

Minimum Wage (National Living / Minimum Wage)

National Living Wage (21+): ~£12.71/hour. Approximate monthly (assuming 40 hrs/week):

12.71 × 40 × ~4.33 ≈ £2,202/month for adult NLW. (2,961.54 US dollars). Let's not remove rent as it will be disastrous.
Younger age bands have lower minimums (e.g., 18–20: ~£10.85/hour).
Initial tax rate after the standard deduction 20%. All people in the minimum wage bracket are taxed. You can multiply by 12.

3. South Africa Tax-Free Threshold
South Africa uses an annual tax threshold, below which you do not pay income tax:
If under age 65: R95,750/year. Approximate monthly tax-free amount:
R95,750 ÷ 12 ≈ R7,979/month (if this is your only income, you pay no income tax; amounts above this are taxed progressively).
Minimum Wage
The national minimum wage is R23.19 per hour. Approximate monthly minimum wage (40 hrs/week):
23.19 × 40 × ~4.33 ≈ R4,016/month. (243.42 US dollars).
Initial tax rate after the standard deduction 18%

4. Nigeria Tax-Free Salary Threshold (Personal Income Tax)
Under Nigeria’s 2025 Tax Reform Acts, the tax-free (zero income tax) threshold has been substantially increased: Individuals earning up to ₦800,000 per year (556.68 US dollars) will pay no personal income tax. This exemption applies after allowable reliefs and deductions (including rent relief up to ₦500,000/year and other statutory deductions ).
Minimum wage earners (and even slightly above) will be fully exempt from personal income tax under the new system.
Context: Prior to this reform, Nigeria’s lowest taxable band started at much lower thresholds with progressive rates beginning around ₦300,000/year. Under the new law, the first taxable band only begins above ₦800,000.
Minimum Wage
The national minimum wage in Nigeria is ₦70,000 per month (effective from May 1, 2024). Approximate monthly minimum wage:
₦70,000/month (this is already the statutory minimum). 584.51 US dollars in a year.
This marks a major change intended to relieve low- and middle-income earners in Nigeria and simplify the tax system.
Initial tax rate after the standard deduction 15%

Do you know the definition of poverty by world Bank? How much per day?

Op you need to check Q&A 22.

You have assumed that the person earning 6m yearly is paying a rent of 2.5m or higher in that same year, hence the 500k rent relief. However, this is not realistic.

So you expect me to pay you millions every year to embezzle without benefiting anything from you. Come and sue me!

How will the government detect underpayment if someone reports ₦150k income but actually earns ₦300k.

Will tax officers now resort to Bank statement reviews?