Tax Relief Ahead: Tinubu's 2026 Reforms to Benefit Nigerians

 

President Bola Tinubu has reassured Nigerians that the new tax regime, set to take effect in 2026, is designed to ease the burden on low-income earners, the poor, and small businesses. 

Speaking at the 8th Annual Senator Abiola Ajimobi Roundtable, Tinubu emphasized that the policy aims to provide relief, particularly in critical sectors like food, medication, education, and agriculture.

The President highlighted that the recent economic reforms, though initially challenging, are yielding positive results, with improvements in GDP growth, inflation, and fiscal deficit. 

He urged Nigerians not to panic, stating that the new tax laws will exempt essential goods and services from burdensome taxes and eliminate multiple taxation on businesses.

Some key benefits of the new tax regime include:

- Tax Exemptions: Individuals earning the national minimum wage or less, and annual gross income up to ₦1.2 million are exempt.

- Reduced PAYE: Lower tax rates for those earning up to ₦20 million annually.

- VAT Relief: Zero or exempt VAT on basic food items, education, healthcare, and pharmaceutical products.

- Support for Small Businesses: Zero company income tax for small companies with turnover ≤ ₦100 million.

Tinubu also paid tribute to late former Governor Abiola Ajimobi, praising his leadership and commitment to long-term development. 

The event was attended by dignitaries, including Governor Seyi Makinde and former Chief of Staff Ibrahim Gambari, who discussed democratic renewal and electoral credibility in Nigeria.