‘Tax reform is not a tax hike’, Aderonke defends new zero-tax threshold

An aide of the chairman of the Nigeria Revenue Service (NRS) has pushed back against claims by former Transport Minister, Rotimi Amaechi, that Nigeria’s newly enacted tax reforms will impose heavier burdens on low-income earners, insisting instead that the measures are designed to protect the most vulnerable. In an opinion article titled “Tax Reform Is […]

An aide of the chairman of the Nigeria Revenue Service (NRS) has pushed back against claims by former Transport Minister, Rotimi Amaechi, that Nigeria’s newly enacted tax reforms will impose heavier burdens on low-income earners, insisting instead that the measures are designed to protect the most vulnerable.

In an opinion article titled “Tax Reform Is Not a Tax Hike: Correcting Rotimi Amaechi’s Wrong Narrative,” Arabinrin Aderonke Atoyebi argued that the revised tax framework, which takes effect on 1 January 2026, introduces a more progressive structure that exempts many low-income earners from paying personal income tax altogether.

“Beginning January 1, 2026, Nigeria’s revised tax framework introduces a more progressive system designed to protect low-income earners,” she wrote. According to her, individuals earning at or around the national minimum wage will be fully exempt, meaning “many workers at the lower end of the income scale will pay zero tax”.

She explained that taxable income up to approximately ₦800,000 now falls within a zero per cent bracket, with only earnings above that threshold subject to graduated rates. “That is not an increase in burden; it is targeted relief,” Atoyebi stated.

The reforms also expand relief for small businesses. Under the new provisions, companies with annual turnover of up to ₦100 million will qualify as small businesses and be exempt from Company Income Tax. Atoyebi described this as “a substantial shift from previous limits” and “a deliberate effort to ease pressure on micro, small, and medium enterprises”.

Framing the policy as a balancing act, she said the guiding principle is to “shield the vulnerable, broaden compliance among higher earners, and strengthen revenue collection mechanisms without squeezing those already struggling”.

While acknowledging that “policy disagreements are legitimate”, Atoyebi maintained that claims the reforms amount to a tax hike on low-income earners “misrepresent what the law actually provides”.

“Nigeria’s fiscal challenges require serious engagement, not alarmist interpretations,” she added, urging critics to focus instead on implementation efficiency, transparency, and accountability.