Many Nigerian workers who received their January 2026 salaries are already noticing improved take-home pay following a reduction in deductions under the Pay As You Earn (PAYE) tax system.
The development was disclosed by Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, in a statement shared on his WhatsApp platform. He said feedback from employees across multiple sectors indicates that the new tax laws are beginning to ease the financial burden 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,” Oyedele stated.
He explained that the session will target senior officials involved in salary administration and tax compliance, including Human Resources directors, payroll managers, chief financial officers, tax managers, and other executives overseeing staff remuneration.
Oyedele also dismissed public concerns about alleged new charges on electronic transfers and bank deposits, clarifying that the tax reforms did not introduce any new levy on bank transfers or funds held in personal accounts.
“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 said.
To ensure that banks and other financial institutions understand how to apply the new rules, 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.
He noted that the session included officials such as 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, investment and securities firms, and other financial institutions.
During the discussions, participants focused on making sure customers are not wrongly charged, especially in the area of taxes linked to bank services. They also talked about the need for a Tax Identification Number for bank accounts used for business or income purposes, a rule that has been in place since January 13, 2020.
Other areas covered included giving customers clear guidance on how to file their tax returns and claim lawful deductions, as well as the removal of Tax Clearance Certificates as a requirement for foreign exchange transactions, to make it easier for people and businesses to operate.
Oyedele added that the meeting also explained the proper process tax authorities must follow when using their powers to recover unpaid taxes, and the extra protections now available to taxpayers through the Office of the Tax Ombud.
He said 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.
Source; The Nation News