The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has announced that Nigerian employees are already seeing higher take-home pay following reductions in Pay As You Earn (PAYE) deductions under the new tax laws.
Sharing the update via his official X handle on Tuesday, Oyedele said feedback from workers who received their January 2026 salaries showed that the revised tax framework is beginning to deliver relief.
“Early responses indicate that the reforms are easing the financial burden on salary earners, particularly those whose income taxes are deducted at source,” he noted.
He explained that the decline in PAYE deductions reflects the initial impact of the Federal Government’s ongoing tax reforms, which aim to boost disposable income, simplify tax administration, and support economic growth.
According to Oyedele, the reforms are structured to provide targeted relief for employees in the formal sector, where PAYE remains the primary mode of income tax collection.
“The reforms are designed not only to ease workers’ burden but also to improve compliance nationwide,” he added.
