Low-income earners across Nigeria are recording higher take-home pay following sweeping tax reforms introduced in January 2026, as the Federal Government shifts focus toward taxing high-income individuals and profitable entities, according to Honourable Bamidele Atoyebi.

Atoyebi, convener of the Bola Ahmed Tinubu Ideological Group (BAT-IG), said the reforms under President Bola Ahmed Tinubu and tax administrator Zaccheus Adedeji have eliminated tax obligations for workers earning below ₦800,000, a move he described as a major relief for ordinary Nigerians.

He explained that prior to the policy, employees within that income bracket paid about 15 per cent of their earnings as tax, but are now fully exempt, resulting in “a significant and welcome boost” in disposable income.

The reform also removed tax burdens for individuals earning below ₦500,000, who previously paid over 10 per cent, and those earning under ₦300,000, who were taxed approximately 8.7 per cent, effectively easing financial pressure on the most vulnerable segments of the workforce.

Atoyebi noted that the policy is designed to address rising living costs by leaving more money in the hands of low-income earners who are more likely to spend within local economies, thereby stimulating grassroots economic activity.

He added that the reforms are part of a broader strategy to “tax right rather than tax more,” focusing on wealthy individuals and high-earning businesses while encouraging investment and growth.

The new framework, he said, prioritises taxation on profits rather than investments, while also closing loopholes to ensure that profitable corporations meet their obligations.

According to him, increased revenue from the reforms is being directed toward critical infrastructure, including roads, bridges and rail systems, aimed at improving connectivity and economic productivity nationwide.

The reforms have also attracted international backing, with the African Development Bank providing a grant to support their implementation and expansion.

Atoyebi described the support as a “significant show of confidence” in Nigeria’s ability to balance fiscal responsibility with social equity, adding that it reinforces the credibility of the policy amid criticism from opposition groups.

He said the additional revenue is expected to play a key role in addressing Nigeria’s energy deficit, citing estimates that about $21 billion is required to provide electricity to over 120,000 underserved communities.

The Managing Director of the Rural Electrification Agency, Abba Abubakar Aliyu, was quoted as acknowledging the scale of the infrastructure gap and the need for sustained funding to bridge it.

Atoyebi further revealed that about 3,000 communities have expressed interest in benefiting from ongoing electrification efforts, reflecting growing grassroots demand for improved energy access.

He maintained that funds generated through the reforms and supporting executive measures position the government to address long-standing infrastructure challenges and improve living conditions.

The BAT-IG convener said the reforms signal a shift in public perception of taxation in Nigeria, transforming it from a burden into a tool for national development.

He added that with increased earnings for low-income workers and visible investments in infrastructure, the policy demonstrates a commitment to transparency, equity and inclusive growth.

Honourable Bamidele Atoyebi, the convener of the Bola Ahmed Tinubu Ideological Group (BAT-IG), is also the publisher of Unfiltered and Mining reports.