Tax board says 92% of income earners now pay less or no personal income tax

Most Nigerians who pay personal income tax are now paying less, or nothing at all, according to the Joint Revenue Board (JRB).

The board's Executive Secretary, Mr Olusegun Adesokan, said data from 23 states showed about 92 per cent of income earners covered by its assessment now pay lower or zero personal income tax under the new tax laws that took effect in January 2026.

He spoke at a news conference in Abuja on Wednesday on the early results of the reforms.

Under the new personal income tax structure, the first ₦800,000 of annual taxable income is taxed at zero per cent. Higher bands rise progressively, up to a top rate of 25 per cent.

Adesokan said the aim was to tax prosperity rather than poverty, and to leave workers with more money in their pockets. He gave an example of a worker earning ₦1.2 million a month who could keep more than ₦80,000 extra monthly, depending on applicable deductions.

The board also said tax collections in the 23 states rose 27 per cent between January and June 2026, compared with the same period in 2025. It credited better revenue administration and efforts to bring high-income earners into the tax net.

Roadside collections still a problem

The reforms have not wiped out multiple taxation. Adesokan acknowledged that unauthorised roadside collections remain widespread, including demands from individuals and groups claiming to represent government authorities.

He said the board was working with the police and state revenue authorities on enforcement, but did not give a date for when it would start. He urged businesses to confirm any suspicious demand with the relevant tax office and to pay only into authorised government accounts, not private ones.

He also said the board would keep educating the public, since many traders and small businesses still complain of tax demands despite the exemptions. The 92 per cent figure covers personal income tax assessments only, not every form of tax, including consumption taxes.

On harmonisation, Adesokan said 21 states had adopted the harmonised taxes and levies law as of October 27. The framework folds numerous state charges into nine broad categories. The states listed include Kebbi, Niger, Kaduna, Plateau, Ekiti, Benue, Zamfara, Enugu, Kogi, Abia, Kwara, Nasarawa, Anambra, Gombe, Akwa Ibom, Adamawa, Bayelsa, Delta, Yobe, Ondo and Borno.

The National Economic Council has named the initiative as one of its priorities under a 90-day action plan.

Adesokan also said the board's 158th meeting banned the sale of stickers and emblems nationwide. He said motorists would no longer be forced to buy irrelevant documents before moving goods across the country, which should help bring down the cost of farm produce.

Other measures include a National Tax Identification system, developed with the Nigerian Revenue Service (NRS), to help authorities verify taxpayer records across states, and plans for joint federal and state tax audits so businesses are not visited separately by different agencies.

He said taxpayers with disputes or unfair assessments can seek redress through the Office of the Tax Ombud.

What happens next

The board says it will continue public education on who is exempt, and work with the police and state revenue offices to curb illegal collection. It has not said when enforcement will begin. It also plans to review complaints about levies on pensioners and residents in the Federal Capital Territory.