Tinubu’s Tax Bill: Relief for Nigerians Earning Below N1 Million

Nigerian Tax Reform: No Taxes for Earnings Under N1 Million

President Tinubu’s proposed tax reforms, outlined in the new Tax Bill, promise relief for many Nigerians by exempting those earning below ₦1 million annually from paying Personal Income Tax (PIT).

The changes aim to simplify the tax system and provide financial relief to lower-income earners, who have often been burdened by complex tax structures.

Under the new bill, the first ₦800,000 of an individual’s income is tax-free, and only those earning above ₦50 million annually will face the highest tax rate of 25%.

This progressive approach also includes adjustments to how small businesses are taxed, with an increase in the threshold for Companies Income Tax (CIT) exemption from ₦25 million to ₦50 million in turnover.

While these reforms are seen as an effort to modernize the tax system and ease the burden on ordinary Nigerians, they have sparked mixed reactions, especially considering the rising cost of living​.