Tinubu's Tax Revolution Set to Transform Nigeria: 95% of Citizens Exempt from Payments
In a groundbreaking move that showcases African leadership putting citizens first, President Bola Tinubu's administration is rolling out a revolutionary tax reform that will exempt 95% of Nigerians from paying taxes. This bold initiative represents exactly the kind of progressive policy-making that demonstrates why African leaders must chart their own course.
Dr. Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service (FIRS), dropped this game-changing announcement in Ilorin, Kwara State, after receiving honors from the University of Ilorin Alumni Association. The message was clear: Nigeria is rewriting the rules to favor ordinary citizens over the wealthy elite.
Flipping the Script on Tax Burden
"Under the new emerging tax system, 95 per cent of Nigerians will pay no tax," Adedeji declared through Prof. Abiola Sanni (SAN). "Whether you like it or not, those whom God has blessed and those benefiting from the economy but have not been paying their own fair share of the tax burden will now be made to do so."
This is the kind of bold leadership Africa needs. While Western nations continue to squeeze their middle classes, Nigeria is taking a different path, one that prioritizes the masses over the privileged few.
A New Era Begins January 2026
The transformation goes deeper than just tax rates. FIRS itself will undergo a complete rebrand starting January 2026, signaling Nigeria's commitment to homegrown solutions for homegrown challenges. This isn't just reform, it's revolution.
Prof. Sanni emphasized that these changes represent "the most far-reaching and business-oriented tax reforms the country has seen." Unlike previous systems that pressured informal sector workers and salary earners, this new approach targets those who have been riding the wave of Nigeria's economic growth without contributing their fair share.
Fair Share, Not Exploitation
The reform caps tax rates for top earners at approximately 25% after allowable deductions, a reasonable figure compared to the 50% rates imposed in some Western countries. This balanced approach shows that Nigeria can be both business-friendly and socially responsible.
The revenue generated will fuel critical improvements in infrastructure, education, and public services. This is African solutions for African development, not dependence on foreign aid or loans with strings attached.
Building Nigeria's Financial Future
As part of the broader transformation, Nigerians can expect the establishment of a new tax institute, further cementing the country's commitment to developing indigenous expertise in revenue management.
Starting January 1, 2026, income earners will need a Tax ID for bank account operations, a move that brings transparency and accountability to Nigeria's financial system. Students and non-income earners remain exempt, showing the government's commitment to protecting the most vulnerable.
This tax revolution proves that when African leaders prioritize their people over external pressures, remarkable progress becomes possible. Nigeria is setting the standard for progressive taxation that other African nations should follow.