Workers’ take-home pay now higher with PAYE cuts – Oyedele
Agency Report
Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele says workers take-home pay is now higher following the reductions in Pay As You Earn (PAYE) deductions
Oyedele disclosed this on Monday in a post on his verified X handle, citing feedback from workers who have received their January 2026 salaries under the newly implemented tax regime.
He said the responses suggest that the reforms are already easing the tax burden on salary earners, particularly employees whose income taxes are deducted at source.
“We are pleased to note the feedback from workers who have received their salaries for January 2026 and confirmed a reduction in their PAYE tax, resulting in higher take-home pay under the new tax laws,” Oyedele stated.
The development comes as the Federal Government begins enforcing a new tax framework anchored on the Nigerian Tax Act (NTA) and the Nigerian Tax Administration Act (NTAA), part of a broader fiscal reform agenda aimed at simplifying tax administration, reducing multiple taxation, and improving disposable income for Nigerians.
According to Oyedele, the reduction in PAYE deductions reflects the early impact of reforms specifically designed to make the tax system fairer and less burdensome for workers.
He reiterated that the reforms are structured to ensure that most Nigerians pay less tax overall while improving compliance and efficiency.
He previously disclosed that about 98 per cent of Nigerian workers are expected to either pay no PAYE tax or pay significantly lower taxes under the new framework.
In addition, around 97 per cent of small businesses are projected to be exempt from corporate income tax, value-added tax (VAT), and withholding tax, while large companies are also expected to benefit from reduced tax liabilities.
