Approximately 92 per cent of personal income tax payers will see their tax burden reduced or be exempted entirely under Nigeria’s ongoing tax system overhauls, according to the Joint Revenue Board (JRB).
Speaking at a press conference on Wednesday to review early outcomes of the reforms implemented in January 2026,
JRB Executive Secretary Mr. Olusegun Adesokan stated that the new framework is structured around fairness, equity, accountability, and transparency.
“Our core philosophy is to tax prosperity rather than poverty, profits rather than capital, and returns rather than investments,” Adesokan told journalists in Abuja.
He emphasized that the policy aims to ease the financial pressure on low-income workers while ensuring high-net-worth individuals pay a proportionate share toward national development.
Key Personal Income Tax Adjustments
Under the updated Personal Income Tax framework, the minimum tax-exempt threshold has been raised, offering relief to lower-income earners while adjusting progressive rates across higher earnings brackets:
Tax-Free Threshold: The first ₦800,000 of annual income is fully exempt from personal income tax.
Maximum Tax Rate: Capped at 25 per cent for top income tiers.
Increased Disposable Income: Adjusted tax bands and relief allowances leave workers with higher net earnings. For example, a worker earning ₦1.2 million monthly can save over ₦80,000 per month, depending on applicable deductions.
Despite tax relief for the majority of earners, state-level collections have expanded due to improved administrative efficiency and better capture of high-income taxpayers. Data collected across 23 states showed a 27 per cent year-on-year increase in tax revenues collected between January and June 2026 compared to the same period in 2025.
Adesokan highlighted several operational milestones driving these results:
National Tax Identification System: Developed alongside the Nigerian Revenue Service (NRS), this platform assigns a universal, interoperable Tax Identification Number (TIN) to individuals and businesses nationwide.
Taxpayers can retrieve their Tax IDs online using verified personal details, reducing administrative delays and duplicate records.
Harmonisation of Taxes and Levies: As of Tuesday evening, 21 states have adopted a unified framework that condenses overlapping charges into nine streamlined tax categories.
The JRB is collaborating with state revenue boards and law enforcement agencies to eliminate unauthorized roadside collections that inflate transportation costs and food prices.
Institutional Guidelines: The board has issued standard guidelines across federal and subnational authorities to align tax collection methods across jurisdictions.
Addressing concerns about implementation, Adesokan stressed that the current reforms do not introduce new tax obligations, but rather consolidate and streamline existing ones.
Taxpayers facing unfair assessments or administrative disputes are encouraged to submit formal complaints through the newly empowered Office of the Tax Ombud, designed to mediate grievances between citizens and revenue agencies.
“The ultimate metric of success for these reforms will be seen in businesses expanding, job creation, and shared prosperity across the nation,” Adesokan concluded.
