Nigerian Millionaires Earning Over N100M to Pay 25% Tax

Nigeria plans to make its tax system fairer by possibly increasing the tax rate to 25% for people earning over N100 million each month. This change was discussed at a meeting in Abuja, organised by the Nigeria Economic Summit Group and the Ministry of Budget and National Planning.

The head of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, pointed out problems with the current system where the poorest pay most of the taxes.

These proposed changes, which could start in January 2025, aim to lower taxes for people making N1.5 million or less each month while making the very rich pay more.

This plan would help balance the budget and make sure that rich people are paying a fair amount. It would also remove income tax for people with very low incomes and lower taxes for middle earners.

The government also wants to reduce taxes on necessary items like food and health services, making life easier for poorer families. However, taxes on luxury items might go up to keep the government’s money balanced.