New Tax Laws boost workers’ take-home pay as PAYE deductions drop – Oyedele

Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has disclosed that Nigerian workers are already seeing improved take-home pay following a reduction in Pay As You Earn (PAYE) deductions under the newly implemented tax regime.

Oyedele made the disclosure in a post on X on Monday, citing feedback from employees who have received their January 2026 salaries. According to him, early signals indicate that the revised tax framework is beginning to ease the burden on workers, especially salary earners whose taxes are deducted at source.

He explained that the observed drop in PAYE deductions reflects the initial impact of the recent tax reforms, which were designed to lessen the tax pressure on workers.

“We are encouraged by feedback from workers who have received their January 2026 salaries and confirmed a reduction in PAYE deductions, resulting in higher take-home pay under the new tax laws,” Oyedele said.

He noted that the benefits are more pronounced for employees whose personal income taxes are handled directly through payroll systems by their employers.

However, Oyedele stressed the need for continued engagement to ensure uniform and accurate application of the new provisions. He revealed that the Committee, in collaboration with the Joint Revenue Board, will host a dedicated stakeholder engagement session this week.

The online session, he said, will focus on clarifying and ensuring the correct implementation of the new Personal Income Tax rules by payroll managers and tax administrators nationwide.