Mr. Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, has unveiled 50 tax exemptions and reliefs aimed at easing the financial burden on low-income earners, average taxpayers, and small businesses under Nigeria’s new tax reform laws, effective January 1, 2026.

Describing the reforms as one of the most people-focused in recent history, Oyedele said the framework emphasizes fairness, simplicity, and inclusiveness to help households and small businesses thrive in a growth-friendly tax environment.

Key provisions include:

• Personal Income Tax (PIT): Full exemption for individuals earning the national minimum wage or up to N1.2 million annually; reduced Pay As You Earn (PAYE) rates for workers earning up to N20 million.
• Gifts and deductions: Gifts are tax-free, while contributions to pension funds, the National Health Insurance Scheme, National Housing Fund, loan interest for owner-occupied homes, and life insurance premiums are deductible.
• Rent relief: 20% of annual rent, up to N500,000, is deductible.
• Pensions and retirement benefits: Tax-exempt, including gratuities, compensations for job loss up to N50 million, and pension fund assets.
• Capital Gains Tax (CGT): Exemption for the sale of owner-occupied houses and personal effects worth up to N5 million, up to two private vehicles per year, and certain share transactions.
• Businesses: Small companies with turnover ≤ N100 million and startups enjoy zero Companies Income Tax (CIT). Employment incentives, agricultural enterprises, and investors in labeled startups benefit from tax holidays or deductions.
• VAT and other exemptions: Basic foods, educational services, healthcare, agricultural inputs, baby products, disability aids, electric vehicles, and land/buildings attract zero VAT. Small businesses are exempt from withholding tax and development levies.

Additionally, electronic transfers below N10,000 are exempt from stamp duty, and a civic initiative, Influencing for Good, will train content creators to educate the public about the reforms.

Oyedele described the reforms as a major step toward a fairer, more productive, and inclusive fiscal system that supports households, businesses, and national growth.