By Atoyebi Nike
The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee (FPTRC), Mr. Taiwo Oyedele, has revealed that only three per cent of Nigeria’s informal sector operators are capable of paying taxes.
Speaking at PwC’s Executive Summit on Nigeria’s Tax Reform in Lagos, Oyedele said the recently introduced tax reforms have legally exempted the bottom 97 per cent from taxation to allow them room to grow.
“Let them breathe,” he said. “When they grow, they will have the capacity to pay.” He warned, however, that tax evaders disguising as small businesses would be identified and penalized.
Oyedele also confirmed that Nigeria’s tax system is now fully progressive, with new laws designed to ease the burden on low-income earners. One of the key provisions exempts individuals earning less than N800,000 annually from personal income tax.
The new tax law, signed by President Bola Tinubu on June 26, takes effect from January 1, 2026.
Also speaking at the event, PwC’s West Market Area Senior Partner, Sam Abu, said the reforms must be matched with collaboration and integrity across sectors.
“Policy alone won’t deliver. Everyone including government, businesses, and individuals must work together to shape a more effective tax system,” he said.
