Nigeria Masses To Benefit 50 Tax Exemptions – Oyedele

Ahead of January 1, 2026, implementation of the new tax laws, the presidential fiscal policy and tax reform committee said the Nigerian masses are eligible for 50 tax exemptions.

The Chairman of the presidential fiscal policy, Dr Taiwo Oyedele, who stated some of the 50 exemptions in his verified X handle, said exemptions will benefit the masses under the new tax laws.

“From 1 January 2026, the new tax laws will provide many reliefs and exemptions for low-income earners, average taxpayers, and small businesses, including personal income tax or PAYE.

Oyedele stated categories of persons to be exempted from PAYE going forward from January next year to include, individuals earning the national minimum wage or less (exempt), annual gross income up to ₦1,200,000 (translating to about ₦800,000 taxable income) to be exempted; reduced PAYE tax for those earning annual gross income up to ₦20 million while gifts will be exempted.

Similarly , some categories of insurance policies and others would be tax-free from January next year. Under the category of such reliefs for individuals include Pension contribution to PFA, National Health Insurance Scheme, National Housing Fund contributions, Interest on loans for owner-occupied residential housing, Life insurance or annuity premiums and rent relief – 20% of annual rent (up to ₦500,000).

Contributions to pension and gratuities will enjoy tax exemption when the new tax laws come into effect next January. Specifically, Pension funds and assets under the Pension Reform Act (PRA) are tax-exempt, Pension, gratuity or any retirement benefits granted in line with the PRA and Compensation for loss of employment up to ₦50 million.

Payments for stamp duties will enjoy tax free deduction. Under the category, electronic money transfers below ₦10,000, Salary payments, Intra-bank transfers, transfers of government securities or shares, including all documents for transfer of stocks and shares, among others.