New tax law exempts 97% of informal sector from taxation-Oyedele

By Omedele Adigun

The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr Taiwo Oyedele, has disclosed that only three per cent of informal sector operators can pay taxes in Nigeria. He stated that on Monday, in Lagos, at the PwC’s Executive Summit on Nigeria’s Tax Reform, with the theme “The New Tax Era: What Nigeria’s Tax Reform Means to Individuals and Businesses.”

He noted that globally, one per cent pays more taxes than the bottom 99 per cent.

He explained that from the available analysis, it is only the top three per cent of the informal sector that can pay, and as such, in these reforms, the tax committee has legally exempted the bottom 97 per cent from paying taxes.

Oyedele noted that when they grow, they wouldl have the capacity to pay tax. He said the system Nigeria is building would not give room for tax liars, and if anyone lies and says his business is small when it is not, the system will find out, and there shall be consequences for those who underdeclare and engage in tax evasion.

According to the FPTRC chair, the country’s tax is now progressive, and all the major taxes have become progressive. Oyedele also disclosed that the gazette of the recently signed tax law was being printed in Lagos, and the final copy of the tax would be released to the public afterwards.

Recall that President Bola Tinubu signed four bills into law on June 26, but they would become effective on January 1, 2026. The Regional Senior Partner, PwC West Market Area, Sam Abu, noted that the reforms embarked on by the government were a good starting point for engaging in that conversation very robustly.