In a press statement responding to recent public concern, Mr. Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, affirmed that the inclusion of the Nigerian diaspora in the new tax framework does not equate to the imposition of “new” taxes as popularly feared. Rather, Oyedele said, the revised tax regime seeks to widen the tax base while protecting low-income earners.

Diaspora Inclusion: Clarifying the Scope

Oyedele explained that Nigerians living abroad who remit income or derive revenues tied to Nigeria will be captured under the tax law’s provisions — not through the introduction of wholly novel tax instruments, but by formally integrating existing rules.

He emphasized that these clarifications close ambiguities that formerly existed in the tax code rather than burdening new categories of people unprepared for taxation.

He said such measures are meant to ensure fairness, transparency, and that all who benefit from Nigeria’s economic system also contribute accordingly.

According to Oyedele, income streams like content creation, digital earnings, and virtual assets (including crypto) have always had tax implications under the existing Personal Income Tax Act; the reforms hence serve to clarify and harmonize, not expand, tax obligations.

Protecting the Vulnerable: Exemptions for the Majority

Oyedele reiterated that under the new tax regime, 98 percent of wage earners will be exempted entirely from Pay-As-You-Earn (PAYE) tax starting January 2026.

His message to ordinary Nigerians was that:

* The poor will not pay personal income tax;

* Middle‑class earners will enjoy reduced tax rates;

* Only high-net-worth individuals — representing a small fraction of the population — will face steeper marginal rates.

In line with the “pro-poor” orientation of the reforms, Oyedele also disclosed that more than 90 percent of small and micro businesses would similarly receive tax exemptions, and that essential consumables like food, healthcare, and education could enjoy zero‑VAT status.

Addressing State and Local Concerns

Some governors and local government officials have expressed fears that revenue would shrink under the reforms. To assuage such concerns, Oyedele assured that state-level tax authorities were fully engaged in the design stages through the Joint Tax Board (JTB).

He argued that the reforms are expected to strengthen state and local revenues by improving collection efficiency, broadening base, and reducing leakages — meaning that states should not suffer financially.

No Inheritance Tax or New Levies

Addressing rumors and stakeholder pushback, Oyedele reaffirmed that inheritance tax will not be reintroduced in the reforms. He clarified that the section being misinterpreted as inheritance tax — Section 4(3) on family income — does not amount to taxing assets passed on through inheritance.

Also Read: Senate Confirms Prof. Joash Amupitan as INEC Chairman

Moreover, he insisted that the reform is not about raising new taxes. The aim is to streamline and harmonize existing taxes, not broaden burdens arbitrarily.

Why the Reforms Matter

Oyedele has consistently argued that Nigeria’s fiscal resources are too constrained to support meaningful transformation under the old tax regime.

By rationalizing the system and reducing distortions, he believes the country can boost tax-to-GDP ratios, attract investment, and improve governance.

He also warned that the reforms face resistance, noting that he has received threats over his role in pushing them forward — a remark he made previously at a public session.