Nigerian Salary Earners See Higher Take-Home Pay as Tinubu’s Tax Reforms Kick In
- Nigeria's tax reforms are starting to deliver higher net pay for workers amidst earlier fears of financial strain
- Analyst Arabinrin Aderonke highlights reduced PAYE deductions as a sign of successful reform implementation
- Revised tax framework aims to protect low- and middle-income earners, fostering fairness and economic equity
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Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Nigeria’s newly implemented tax reforms are beginning to deliver measurable relief for salary earners, with early indicators showing reduced PAYE deductions and higher net pay for many workers.
This is according to a policy commentary by analyst Arabinrin Aderonke, who says the reforms are already reshaping how income tax impacts salaried Nigerians.
Source: Twitter
The changes, enacted under President Bola Ahmed Tinubu’s administration, were designed to overhaul a tax structure long criticised for disproportionately burdening workers while tolerating inefficiencies and loopholes elsewhere in the system.
From controversy to early gains
When the tax bills were first introduced, they triggered widespread public anxiety and political backlash.
Critics warned that the reforms would shrink take-home pay and impose fresh financial pressure on workers, with PAYE framed as a looming threat rather than a relief mechanism.
However, emerging payroll data and firsthand accounts from workers are telling a different story.
“Nigeria’s new tax laws are no longer a proposal, a rumour, or a theoretical policy experiment. They are in force, and they are here to stay,” Aderonke wrote. She added that the administration’s decision to push through reform amid economic strain was already “proving to be both timely and pro-people.”
PAYE deductions reduced
As January salaries were paid, many workers began sharing evidence of improved net earnings. While some gross salary figures were adjusted, PAYE deductions declined, resulting in higher take-home pay.
“Salary earners openly confirmed that while gross figures adjusted, net pay actually increased. PAYE deductions reduced. Taxes dropped,” Aderonke noted.
She argued that much of the initial opposition to the reforms was driven by misinformation, rather than the actual content of the policies.
“Nigerians were told their salaries would crash. PAYE was framed as a new punishment rather than a restructured relief,” she said.
Designed to protect workers
According to the analyst, the revised tax framework was deliberately structured to shield low- and middle-income earners, with fairness at its core.
The reforms, she said, are “by design, pro-poor and protective,” contrary to early claims that workers would be worse off.
Beyond immediate relief
Beyond the immediate boost to disposable income, the reforms aim to strengthen Nigeria’s public finance system by improving transparency, sustainability, and equity in tax collection.
Source: Twitter
“The numbers are speaking,” Aderonke concluded, “and they are telling a very different story from the one Nigerians were sold.”
Key changes under new tax regime
Previously, Legit.ng reported that the Nigeria Tax Act (NTA) 2025, which fully kicked off in January 2026 has introduced several changes to the country’s tax compliance framework and has set clearer filing timelines, payment obligations and stiffer penalties for non-compliance.
The federal government said the reforms are aimed at improving revenue certainty, reducing ambiguity and strengthening enforcement across major tax heads, including Stamp Duty, Personal Income Tax (PIT), Value Added Tax (VAT) and Withholding Tax (WHT).
Under the Act, Stamp Duty provisions are now consolidated in Sections 124–127 of the NTA 2025, replacing the Stamp Duties Act, Cap S8 LFN 2004.
Source: Legit.ng
