FG Proposes 25% Tax On High Earners In Nigeria.
The Federal Government is considering a new tax proposal that could see Nigerians earning N100 million or more per month subject to a 25% income tax. This was revealed by Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, during his address at the 30th Nigeria Economic Summit in Abuja.
Oyedele explained that the proposed tax bill aims to create a more balanced and efficient tax system in Nigeria. He highlighted that the overwhelming majority of current taxpayers, about 90%, should not be subject to further taxation, underscoring the importance of easing the burden on lower-income earners.
“We are focusing on those who can afford to contribute more,” Oyedele remarked. “If you earn N100 million a month, we are taking up to 25% from the wealthy. That’s because we need to balance the books.”
He further emphasised the government’s determination to ensure that taxation is fair, with high earners bearing a greater responsibility for contributing to public finances. The committee, according to Oyedele, is actively working on measures to ensure that only the right individuals are taxed.
The proposed changes, which are expected to come into effect in January 2025, are contingent on the passage of the bill by lawmakers. The initiative is part of the government’s broader effort to reform the nation’s fiscal policies and strengthen revenue generation.
