Chairman Taiwo Oyedele reports a rise in Nigerian salaries as new tax laws cut PAYE deductions, boosting take-home pay for employees
The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr Taiwo Oyedele, announced that Nigerian employees are beginning to experience a rise in their take-home pay following reductions in Pay As You Earn deductions under the nation’s revised tax laws.
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Mr Oyedele shared the development via his official X handle, citing feedback from employees who received their January 2026 salaries.
He noted that early responses indicated the revised tax framework was already delivering tangible financial relief, particularly for those whose income taxes are deducted at source.
“The decline in PAYE deductions reflects the initial impact of the Federal Government’s ongoing tax reforms,” Mr Oyedele said, emphasising that the changes are aimed at easing the financial burden on workers, increasing disposable income, and supporting broader economic growth.
The reforms are also intended to simplify tax administration and enhance compliance across Nigeria, Mr Oyedele added.
He highlighted that the measures provide targeted relief for employees within the formal sector, where PAYE remains the primary mode of income tax collection.
Observers have welcomed the development as a significant early win for the government’s fiscal policy agenda, with employees reporting a noticeable improvement in their January salaries.
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Analysts predict that sustained implementation of the reforms could strengthen consumer spending and stimulate economic activity nationwide.
