PAYE Cuts Increased Workers’ Take-Home Pay In January — Tax Reform C’ttee Chair
Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has said a reduction in Pay As You Earn (PAYE) deductions under the newly implemented tax laws has resulted in an increased take-home pay for Nigerian workers.
Oyedele made reference to feedback from employees who have received their January 2026 salaries in a Monday post on X.
He noted that early indications suggested that the new tax framework is already easing the tax burden on workers, particularly salary earners whose taxes are deducted at source.
According to him, the drop in PAYE deductions reflects the early impact of recently enacted tax reforms designed to reduce the tax burden on workers.
“We are pleased to note the feedback from workers who have received their salaries for January 2026 and confirmed a reduction in their PAYE tax resulting in higher take-home pay under the new tax laws,” Oyedele stated.
He added that the reforms are particularly beneficial for employees whose income taxes are deducted directly by their employers.
Despite reports of reduced PAYE deductions by workers who have received their January salaries, Oyedele said further engagement is needed to ensure correct implementation.
He disclosed that the Committee is partnering with the Joint Revenue Board to host a dedicated engagement session for key stakeholders involved in payroll and tax administration.
The online session, scheduled for this week, will focus on applying the new Personal Income Tax provisions correctly.
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