In a major move aimed at reviving the economy and putting money back into the pockets of Nigerians, the Federal Government has officially unveiled a sweeping package of 50 new tax exemptions and reliefs. The landmark reforms, set to commence on January 1, 2026, were announced by the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr. Taiwo Oyedele, via his official X (formerly Twitter) handle.
The initiative is a core part of the government’s agenda to ease the financial burden on low-income earners, boost the competitiveness of businesses, and stimulate job creation. According to Oyedele, the measures are designed to promote inclusive economic growth and reduce inequality across the nation.
A key highlight of the new policy is the full exemption from Pay-As-You-Earn (PAYE) tax for all individuals earning the national minimum wage or less. Furthermore, individuals with an annual gross income of up to ₦1.2 million will also pay zero personal income tax. The reforms introduce a progressive tax structure that will reduce the tax obligations for all individuals earning up to ₦20 million annually.
For businesses, a significant relief comes for small companies. Any company with a yearly turnover not exceeding ₦100 million and total fixed assets below ₦250 million will pay a 0% Companies Income Tax.
The new laws also provide extensive reliefs on essential goods and services. Basic food items, healthcare products, educational materials, agricultural inputs, and selected energy equipment will now attract 0% Value Added Tax (VAT) or be fully exempted. Additional benefits include tax exemptions on gifts, certain allowances, pension contributions, and a new rent relief of up to 20% of annual rent, capped at ₦500,000.
The government states that these comprehensive reforms are designed to simplify tax compliance, widen the tax net, and encourage investment in critical sectors of the economy.
