A tax expert has warned that Nigeria’s new tax law, which takes effect on 1 January, 2026, could put extra pressure on middle-income earners, even though it exempts low-income workers and small businesses.
Speaking on Hard Facts with Mary-Ann Duke-Okon on Nigeria Info 99.3FM on Wednesday, Emmanuel Onasanmi praised the Federal Government for merging over 60 old tax laws into four simple ones.
He then went on to point out that the real test will be how the rules affect average Nigerians.
“They have done a good job of simplifying the tax framework in Nigeria,” he said, “but the middle class may still feel the heat.”
Under the new law, people earning ₦800,000 or less a year will pay no personal income tax. The policy also shields small businesses making ₦100 million or less annually from certain taxes.
Onasanmi noted, however, that those earning just above that level will see higher rates, fewer reliefs, and tougher enforcement.
He explained that many tax waivers and allowances—like the flat relief once given to all taxpayers—are being replaced by targeted deductions.
“If you earn above the new threshold, your disposable income may go down,” he said. “You need to check whether you’ll still be able to pay school fees by the end of January.”
The expert urged government to run massive awareness campaigns to explain the new law and help families plan for the changes.
“Tax education is key,” he said, warning that without proper communication, confusion could lead to low compliance and public anger.
