New tax law favours the poor, targets the rich — Ebonyi commissioner
By Amarachi Ehia, Abakaliki
The Ebonyi State Commissioner for Finance and Economic Development, Mr. Leonard Uguru, has said Nigeria’s new federal tax reform will significantly ease the burden on low-income earners while ensuring that the wealthy contribute more to national revenue.
Uguru disclosed this while speaking to journalists in Abakaliki, explaining that individuals earning below ₦1.2 million annually are now fully exempted from Pay-As-You-Earn (PAYE) tax under the new regime.
According to him, the reform reflects a deliberate policy shift aimed at protecting the poor and promoting economic fairness.
“The tax system has been redesigned to favour the poor. If you earn below ₦1.2 million in a year, you don’t pay PAYE. Those who have more will now contribute more,” the commissioner said.
He acknowledged that the reform may initially reduce states’ earnings from personal income tax but stressed that the shortfall would be balanced through other revenue streams such as Value Added Tax (VAT) and electronic money transfer levies, without placing additional pressure on ordinary citizens.
Speaking on Ebonyi State’s fiscal performance, Uguru revealed that the state’s Internally Generated Revenue (IGR) has recorded a significant turnaround under the administration of Governor Francis Nwifuru. He noted that from June 2023 until December 2025, Ebonyi had never crossed ₦2 billion in monthly IGR until it recorded about ₦2.1 billion in December 2025.
“We now have solid strategies that are steadily improving our revenue base,” he said, adding that the state’s revenue performance in the previous year was sufficient to sustain budget implementation up to December 25, 2025.
Uguru also attributed Ebonyi’s growing financial credibility to strict transparency and accountability standards, following the state’s achievement of a 100 per cent score in the 2025 Budget Fiscal Transparency League.
“Every approval is captured in the budget and published online. Anyone, anywhere in the world, can see how Ebonyi manages its finances,” he stated.
He emphasized that prudent financial management has enabled the state to execute visible infrastructure projects despite receiving one of the lowest allocations from the Federation Account. According to him, Ebonyi did not resort to borrowing between May 29, 2023, and the preparation of the 2026 budget, which made provisions for a targeted development loan.
The commissioner explained that the proposed borrowing is intended for the establishment of a cement factory, which he said would create jobs and boost the state’s internally generated revenue. He dismissed concerns about government involvement in the project, citing the huge capital requirements.
Addressing concerns over multiple taxation and revenue leakages, Uguru admitted that challenges still exist but assured that the government is closing identified loopholes and streamlining tax policies to make the state more attractive to investors.
“Ebonyi is a young state. We must grow our economy without frightening investors away,” he said.
Uguru urged residents to remain calm over the new tax reform, assuring that the state government would intensify public sensitisation campaigns, noting that the policy is ultimately designed to promote economic equity and improve the welfare of Nigerians.
