The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has announced that Small and Medium Enterprises (SMEs) will pay less tax starting from January 2026, when the new tax law takes effect.
Oyedele disclosed this during the 24th annual conference of Women in Management, Business, and Public Service, held at the Eko Hotel, Victoria Island, Lagos.
Speaking during a fireside chat titled “The New Tax Law and You,” he explained that the reforms are designed to ease the burden on Nigerians while promoting growth and efficiency.
He said, “The reforms are people-centric. They focus on efficiency and growth, and you can see how we’ve translated each of these into the letters of the new tax law.”
Addressing the issue of taxes payable by SMEs, Oyedele assured that the changes would bring significant relief to low and middle-income earners.
“So, from January next year, you will pay less tax. I’ll give you examples. Currently, if you earn 30,000 or 40,000, you pay tax. But from next year, that will change,” he said.
“From next year, minimum wage earners will not pay tax. Those earning above minimum wage, up to ₦500,000 per month, will also be exempted. They are covered under the new exemption system.”
He added that for higher-income earners, slight adjustments would apply. “For those currently earning above ₦2 million, you’ll see only a small increase — maybe ₦2,000 or ₦3,000,” Oyedele stated.
Beginning January 1, 2026, Nigerians will benefit from 50 new tax exemptions and reliefs designed to support low-income earners, small businesses, and average taxpayers.
