The Federal Government has unveiled plans to introduce a 25% income tax on individuals earning above N100 million per month.

Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, disclosed this at the 30th Nigeria Economic Summit in Abuja.

The proposed tax reform aims to create a fairer and more efficient tax system, shifting the burden from lower-income earners to high-net-worth individuals.

Oyedele emphasized that 90% of current taxpayers should be exempt from taxation.

“We’re proposing 25% tax on those earning N100 million or more monthly,” Oyedele stated. “This will help balance the books and ensure the wealthy contribute to government revenue.”

The proposed changes are expected to take effect from January 2025, pending legislative approval. The government seeks to increase revenue, promote economic growth, and ensure tax equity.

This move follows recent tax law amendments and demonstrates the government’s commitment to fiscal reform and social equity.