FG Eyes 25% Tax on Wealthy Nigerians Earning Over N100M, Aims to Ease Burden on Low-Income Earners

The Nigerian government is set to impose a 25 percent personal income tax on individuals earning over N100 million per month, according to Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee.

This reform aims to ensure that wealthy Nigerians contribute their fair share to national revenue while easing the tax burden on lower-income earners.

Oyedele disclosed this plan during the 30th Nigeria Economic Summit in Abuja, adding that the new policy could take effect from January 2025.

 Oyedele stressed the need to restructure the tax system, noting that “90 percent of people currently paying taxes should not be paying in the first place.”

He advocated for protecting the financial stability of lower-income earners while ensuring that wealthier individuals pay a higher rate.

“If you earn N100m a month, we are taking up to 25 percent from the rich people. That’s because we need to balance the books,” he said, emphasizing the need for a more equitable system.

 Moreover, the reforms also include reducing or eliminating VAT on essential goods such as food, health, and education to alleviate the financial pressure on low-income households.

The corporate income tax rate is also set to drop from 30 to 25 percent, which Oyedele described as “huge” for businesses, as the government works to balance revenue while supporting economic growth.