Low-Income Earners to Benefit Most from New Tax Reforms – NRS Chairman

Low-income earners are set to gain the most from Nigeria’s ongoing tax reforms, the Executive Chairman of the Nigeria Revenue Service, Dr. Zacchaeus Adedeji, has said.

Adedeji stated that the reforms are deliberately designed to ease the tax burden on vulnerable citizens while ensuring fairness, efficiency, and improved revenue mobilisation for national development. According to him, the new framework prioritises equity by shifting reliefs and exemptions toward low-income households and small businesses that have long felt the pressure of multiple taxes.

He explained that the reforms aim to simplify the tax system, reduce compliance costs, and eliminate practices that disproportionately affect those at the bottom of the income ladder. “Our focus is to protect low-income earners and give them breathing space. The reforms are structured so that those who earn less will pay less, while those with greater capacity contribute their fair share,” Adedeji said.

The NRS chairman noted that the changes include higher relief thresholds, streamlined deductions, and the removal of certain nuisance taxes that often hit informal workers and small traders hardest. He added that these measures are expected to boost disposable income, stimulate consumption, and support household welfare amid prevailing economic pressures.

Adedeji also stressed that the reforms are not just about collecting more revenue but about building trust in the tax system. He said transparency and fairness would encourage voluntary compliance, particularly among citizens who have traditionally felt excluded from the benefits of taxation. “When people see that the system is fair and that taxes are used responsibly, compliance improves naturally,” he said.

He assured Nigerians that the revenue service is working closely with other government agencies and stakeholders to ensure smooth implementation, noting that public sensitisation and taxpayer education remain a priority. Digital tools, he added, are being deployed to make filing and payment easier, especially for individuals and small businesses.

Economic analysts have welcomed the focus on low-income earners, saying it could help cushion the impact of inflation and strengthen social stability. They argue that a more progressive tax system would also broaden the tax base over time without placing additional strain on the poorest citizens.

The federal government has repeatedly said the tax reforms are central to its broader economic strategy, aimed at improving revenue without stifling growth. With implementation underway, attention will now turn to how quickly the promised benefits reach ordinary Nigerians.