Tax Reform Bills to Boost Worker Welfare, Says Fiscal Policy Committee Chair, Oyedele
Dr. Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, has highlighted how proposed tax legislation will benefit Nigerian workers through increased disposable income and reduced living costs.
In a statement released Friday, Oyedele outlined several worker-friendly provisions in the reform bills, including complete Pay As You Earn (PAYE) tax exemption for individuals earning up to N1.3 million annually (over N100,000 monthly)—a measure that would benefit approximately 35 percent of the nation’s workforce across both private and public sectors.
The reform bills also feature lower PAYE tax rates for employees earning up to N20 million annually (about N1.7 million monthly), providing relief to an additional 60 percent of workers, along with full PAYE exemptions for armed forces personnel.
“The bills contain measures to reduce the cost of essential items such as zero Value Added Tax (VAT) on food, healthcare, and education, representing about 60 percent of all consumption.
“There is also VAT exemption on rent, transportation, renewable energy, CNG, baby products, sanitary towels, and fuel products, representing over 20 percent of all consumption.
“These items constitute an average of 82 percent of household consumption and nearly 100 percent for low-income earners to cushion the impact of rising cost of living for workers,” he said.
According to Oyedele, the reforms incorporate several mechanisms to facilitate improved worker compensation. These include tax exemptions for wage increases and transport subsidies for lower-income workers, elimination of restrictive approval processes for salary adjustments, and new limits on taxable employment benefits.
The legislation also addresses housing affordability through various tax relief measures, including “VAT exemption on rent and acquisition of real property and exemption of stamp duties on rent below one million naira,” Oyedele explained.
Additional provisions aim to stimulate employment by offering tax incentives to companies that create new jobs, while establishing favorable tax frameworks to help Nigerians secure international remote work opportunities.
Oyedele emphasized that these reforms deserve widespread support from those concerned with worker welfare, expressing his belief that organized labor groups would recognize the benefits for their membership.
“These changes deserve to be supported by everyone who seeks the well-being of Nigerian workers.
“We believe that the Nigeria Labour Congress and the Trade Union Congress will not intentionally work against the interest of their members,” he said.
