Tax Reforms: PAYE tax reductions increased workers’ salaries in January—Oyedele

Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has boasted that a reduction in Pay As You Earn (PAYE) deductions under the newly implemented tax laws has increased take-home pay for Nigerian workers.

In a statement on Monday, Mr Oyedele cited feedback from employees who have received their January 2026 pay.

He said this indicated that the new tax framework is already easing the tax burden on workers.

“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,” the tax tsar wrote on X.

Mr Oyedele noted that the tax reforms are particularly beneficial to employees whose income taxes are deducted directly by their employers, emphasising the need for further engagement to ensure correct implementation.

Mr Oyedele announced that the committee was partnering with the Joint Revenue Board to host a dedicated engagement session for key stakeholders involved in payroll and tax administration.

The online session, scheduled for Wednesday, January 28, and targeted at HR directors, payroll managers, chief financial officers, tax managers, and other senior executives, would focus on correctly applying the new Personal Income Tax provisions.

He noted that the engagement aims to address implementation gaps and clarify compliance requirements for employers, adding that it would help employees fully benefit from the reforms while employers remain compliant with the updated legal framework.

The development came after the controversial tax reforms became fully operational on January 1.

Meanwhile, the federal government allayed fears that the law would affect poor Nigerians, insisting the reforms were meant to improve disposable income, support economic growth, and simplify tax administration across the country.