Many Nigerian workers who received their January 2026 salaries have reported improved take-home pay following reduced deductions under the Pay As You Earn (PAYE) tax system.
The development was confirmed by Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, in a statement shared on his WhatsApp platform.
Oyedele said feedback from employees across multiple sectors shows that the new tax laws are beginning to ease financial pressure on workers.
“To ensure that those responsible for implementing these changes in their organisations fully understand the process, the committee is organising an implementation session in collaboration with the Joint Revenue Board,” he stated.
Oyedele explained that the sessions will target senior officials involved in salary administration and tax compliance.
These include Human Resources directors, payroll managers, chief financial officers, tax managers, and other executives overseeing staff remuneration.
He emphasised that the reforms are designed to simplify compliance and ensure that organisations apply the new rules correctly.
No New Taxes on Bank Transfers
Addressing public concerns, Oyedele dismissed claims of new charges on electronic transfers and deposits.
“The new laws did not create any tax on electronic transfers or money in your bank account. In fact, many businesses can now claim back input VAT on bank charges,” he clarified.
To ensure banks and financial institutions apply the rules properly, Oyedele said a separate engagement session was recently held.
The meeting brought together the Nigeria Revenue Service, the Joint Revenue Board, the Central Bank of Nigeria, and the Presidential Fiscal Policy and Tax Reforms Committee.
According to Oyedele, the session included risk and compliance officers, legal advisers, chief financial officers, and regulatory affairs executives from fintech companies, commercial and microfinance banks, pension fund operators, asset managers, and investment firms.
Discussions focused on preventing wrongful charges to customers, especially in taxes linked to bank services.
Participants also reviewed the requirement for a Tax Identification Number (TIN) for bank accounts used for business or income purposes, a rule in place since January 13, 2020.
Simplifying Tax Compliance
Other areas covered included guidance for customers on filing tax returns and claiming lawful deductions.
The reforms also removed the need for Tax Clearance Certificates in foreign exchange transactions, making it easier for individuals and businesses to operate.
Oyedele added that the meeting explained the proper process tax authorities must follow when recovering unpaid taxes, and highlighted new protections available to taxpayers through the Office of the Tax Ombud.
“The overall goal of the tax reforms is to bring more people and businesses into the formal economy, reduce confusion caused by different tax rules, and improve access to financial services, while building trust and making the financial system work better for everyone,” he said.
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