Workers Cheer as New Tax Laws Lead to Higher Take-Home Pay in January
By Patience Ikpeme
Nigerian workers have started seeing the positive effects of the 2026 tax reforms, with many reporting more money in their pockets after receiving their first salaries of the year.
“The feedback from employees confirms that the amount of Pay-As-You-Earn (PAYE) tax deducted from their January wages has dropped, leading to a higher take-home pay for most.”
Mr. Taiwo Oyedele, the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, shared this update in a statement. He noted that the new tax laws are now working exactly as planned to give financial relief to the masses.
To make sure that human resource (HR) and payroll managers across the country correctly apply these changes, the Committee is organizing a special session. This event, held with the Joint Revenue Board, aims to teach managers how to handle the new employee compensation rules and stay compliant with the law.
The training is for HR Directors, Payroll Managers, Chief Financial Officers, and other senior executives who handle staff pay.
Mr. Oyedele also spoke to clear the air on some common fears regarding bank accounts and electronic transfers. He made it clear that the government has not added any new taxes on the money Nigerians send or keep in their banks.
“The tax reforms did not introduce any new tax or levy on electronic transfers or money in your bank account,” Mr. Oyedele said. “In fact, under the new laws, many businesses are now eligible to claim input VAT credits on bank charges.”
To ensure everyone is on the same page, the government recently held a meeting with major financial institutions, including the Central Bank of Nigeria (CBN) and the Nigeria Revenue Service. They met with risk officers and legal advisers from banks, fintechs, and pension funds to ensure that no customer is wrongly charged.
One major change mentioned in the reform is the end of using Tax Clearance Certificates (TCC) for buying foreign exchange. This is intended to make it easier for people to do business. The Committee also emphasized that having a Tax ID for a business bank account has been a rule since 2020 and is not a new invention.
“The reforms are designed to support formalisation, tax harmonisation, and financial inclusion, while improving trust and efficiency across the financial system,” the statement added.
Furthermore, a new “Office of the Tax Ombud” has been created to protect taxpayers. This office will serve as a place where Nigerians can go if they feel they are being treated unfairly by tax authorities. The goal of the entire reform is to make the tax system fairer and more efficient for everyone.
