Federal Government Says Poor Nigerians Gain Most From New Tax Reforms

Story: Written by Joseph January 5,2026

The Federal Government has clarified that low-income earners and vulnerable citizens are the biggest beneficiaries of the recently introduced tax reforms under President Bola Ahmed Tinubu’s administration.

Speaking during an interview on Arise Television, the Executive Chairman of the Nigeria Revenue Service (NRS), Zacchaeus Adedeji, explained that the reforms are not designed to increase the tax burden on citizens, but to provide relief for the poor.

According to him, more than 95 percent of low-income Nigerians are fully exempted from the new tax regime when existing exemptions are considered.

Adedeji highlighted that the removal of Value Added Tax (VAT) on essential food items directly benefits the poor, noting that about 90 percent of their disposable income is spent on food. He added that similar tax relief applies to transportation, another major expense for low-income households.

“When you assess the overall impact and net benefits, it is clear that the poor stand to gain the most from these tax reforms,” he stated.