Nigeria Low‑Income Earners Exempt from Personal Income Tax Under 2025 Reforms
Nigerians earning N800,000 or less per year will pay no personal income tax under the 2025 reforms.
In Brief
- •Nigerians earning N800,000 or less per year will pay no personal income tax under the 2025 reforms.
- •The exemption also covers workers earning the national minimum wage of N70,000 monthly or less.
- •Revenue‑sharing formula revised to Federal 10%, State 55%, Local 35%.
- •Reforms aim to improve fairness, compliance and strengthen the revenue base across all tiers of government.
Why It Matters
The tax exemption lifts the burden on low‑income earners, potentially increasing disposable income and stimulating domestic consumption. By revising the revenue‑sharing formula, the government seeks to provide states with more resources while encouraging better tax compliance, which could improve public service delivery and fiscal stability across Nigeria.
Key Details
- Tax Exemption Threshold
- N800,000 annually (or N70,000 monthly minimum wage)
- Revised Revenue‑Sharing Formula
- Federal 10%, State 55%, Local 35%
- Reform Implementation Date
- 2025 tax reforms
- Announcement Venue
- 2026 Symposium of the Forum of Heads of Federal Ministries, Departments and Agencies in Gombe
- Key Official
- Danjuma Manga, Regional Administrator, NRS
Original Reporting & Sources
VNews is an independent briefing product. Original reporting remains credited to the following publishers:
This brief was synthesized automatically using attributed third-party reporting. VNews is a digital news publication produced under the VContent Group brand and operated by Francis Vincent Sunday in Ghana, independent from the publishers cited above. Read our AI Transparency Policy and Editorial & Corrections Policy.