The chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has said that Nigerian workers are beginning to enjoy improved take-home pay following recent reductions in Pay As You Earn (PAYE) deductions under the newly implemented tax laws.
Oyedele disclosed this on Monday via his official X handle, referencing feedback from employees who have received their January 2026 salaries. He noted that early responses indicated that the revised tax framework was already delivering tangible relief to salary earners, particularly those whose income taxes are deducted at source.
According to him, the decline in PAYE deductions reflects the initial impact of the federal government’s ongoing tax reforms, which are aimed at easing the financial burden on workers, increasing disposable income and supporting broader economic growth. He added that the reforms were also designed to simplify tax administration and improve compliance nationwide.
The committee chairman expressed satisfaction with the early outcomes of the policy changes, saying they demonstrated the government’s commitment to ensuring that tax reforms translate into tangible benefits for workers.
He explained that the reforms were structured to provide targeted relief for employees within the formal sector, where PAYE remains the primary mode of income tax collection.
Oyedele said the Presidential Fiscal Policy and Tax Reforms Committee was taking steps to ensure effective and uniform implementation of the new tax regime across organisations.
To this end, he disclosed that the committee, in collaboration with the Joint Revenue Board, would host an engagement session for key stakeholders responsible for applying PAYE deductions across both the public and private sectors.
He said the session would focus on clarifying the provisions of the new tax laws and aligning payroll administrators with the revised requirements to ensure employees fully benefit from the changes.
According to Oyedele, the government will continue to monitor the implementation of the reforms and engage relevant stakeholders to address emerging issues, with the overarching goal of strengthening Nigeria’s tax system and improving workers’ welfare.
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