MISLEADING claims about the new tax reforms signed by President Bola Tinubu in June have been circulating online.
The claims asserted that starting in January 2026, Nigerians earning ₦800,000 and above annually will be required to pay personal income tax ranging from 11 to 20 per cent, under President Bola Tinubu’s new tax reforms.
In an Instagram post, blogger Tunde Ednut shared an image that read:
BREAKING
Starting January 1 2026, anyone, Nigerian or foreigner, who does business in Nigeria and earns 800,000 or more in a year will have to pay 20% tax on their total yearly income, whether they live in Nigeria or not.
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The post also had a caption alongside it that read:
CLAIM
From 2026, President Bola Tinubu will introduce a tax of 20 per cent on Nigerians earning ₦800,000 or more annually.
THE FINDINGS
Findings by The FactCheckHub show that the claim is MISLEADING!
Personal income refers to the total earnings or revenue an individual receives from various sources during a specified period, typically a financial year. It encompasses all the money an individual earns from different activities and sources, both employment-related and non-employment-related.
Tinubu’s tax reforms
President Bola Tinubu’s tax reform process began in July 2023 with the creation of the Presidential Committee on Fiscal Policy and Tax Reforms, led by Taiwo Oyedele.
By October 2024, his administration submitted four tax reform bills to the National Assembly. Lawmakers passed and harmonised them between March and May 2025.
On June 26, 2025, Tinubu signed all four bills into law, introducing sweeping changes to Nigeria’s tax framework.
The new Nigeria Tax Act (NTA) 2025 is intended to take effect from January 1, 2026, subject to the necessary commencement procedures.
For personal income tax, the Act exempts individuals earning ₦800,000 or less annually from paying tax, introduces progressive rates for higher incomes, and retains VAT at 7.5 per cent despite earlier proposals to raise it.
The corporate tax rate for small businesses was also reduced, while VAT revenue-sharing formulas were adjusted.
Under the new personal income tax system, low-income earners who are people earning ₦800,000 or less per annum are fully exempt. But anything above that attracts a tax of various percentages. The highest rate of 25 per cent applies only to individuals earning above ₦50 million annually. The Act also raises the tax exemption threshold for compensation for loss of employment or injury from ₦10 million to ₦50 million. Income tax brackets are now structured as follows:
- First ₦800,000: 0%
- Next ₦2.2 million: 15%
- Next ₦9 million: 18%
- Next ₦13 million: 21%
- Next ₦25 million: 23%
- Above ₦50 million: 25%
Monthly vs annually
When governments set personal income tax, they usually calculate it on an annual basis. This means your total income for a year is assessed, and the tax rate that applies to your income bracket is charged against that total.
However, in practice, tax is often deducted monthly from salaries through a system known as Pay-As-You-Earn (PAYE). Employers calculate what a worker is expected to pay in a year, divide it by 12, and deduct that amount each month.
The viral claims misrepresent the law by treating ₦800,000 as a monthly income, whereas the Nigeria Tax Act sets the exemption threshold at ₦800,000 per year. This means only those earning above ₦800,000 annually face taxation, starting at 15%, not 20%.
Dada Olusegun, Special Assistant to the President, clarified the changes on X, noting that the new system is progressive, ensuring higher earners pay more while low-income earners pay less or none.
Our fact-checker also confirmed these rates using the personal income tax calculator, which aligned with Olusegun’s breakdown and showed the differences between the old and new laws.
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THE VERDICT
The claim that, from 2026, President Bola Tinubu will introduce a 20% tax on Nigerians earning ₦800,000 or more annually is misleading. Under the new Nigeria Tax Act 2025, individuals earning ₦800,000 or less per year are fully exempt from personal income tax. The progressive rates start at 15% for incomes above that threshold, with the highest 25% rate applying only to incomes above ₦50 million.
Seasoned fact-checker and researcher Fatimah Quadri has written numerous fact-checks, explainers, and media literacy pieces for The FactCheckHub in an effort to combat information disorder. She can be reached at sunmibola_q on X or fquadri@icirnigeria.org.
