Public debate is healthy for democracy. However, when discussions about economic policy stray away from verifiable facts, it becomes necessary to restore clarity. Recent comments by former minister Rotimi Amaechi show that Nigeria's new tax laws increase the burden on low-income people, which is not in line with the actual provisions of the reform.
Let's check the facts.
Starting January 1, 2026, Nigeria's revised tax structure introduces a more progressive system designed to protect low-income earners. Individuals earning at or near the national minimum wage are exempt from personal income tax. In practical terms, this means that many workers at lower levels of income will pay zero tax.
Under the new structure, taxable income up to about ₦800,000 falls in the 0% bracket. The graduated rate applies only to income above that limit. This is not an increase in burden; This is targeted relief.
Equally important is the treatment of small businesses. The exemption limit for company income tax has been significantly expanded. Businesses with an annual turnover of up to Rs 100 million now qualify as small companies and are exempt from paying company income tax. This is a major change from previous limits and represents a deliberate effort to reduce pressure on micro, small and medium enterprises.
These changes reflect a broader principle: shielding the vulnerable, widening compliance among higher earners and strengthening revenue collection mechanisms without burdening those already struggling.
Policy disagreement is legitimate. But the suggestion that the reforms raise taxes on low-income people misrepresents what the law actually provides. If anything, the reforms have removed many of them from the tax net altogether.
Nigeria's fiscal challenges require serious engagement, not anxious explanations. Constructive criticism should focus on implementation efficiency, transparency and accountability, areas where meaningful debate can lead to improvement.
Arabinrin Aderonke Atoyebi is the Technical Assistant on Broadcast Media to the Acting Chairman of the Nigeria Revenue Service
