Expert says protesters against new tax laws largely exempt from paying taxes

Many Nigerians protesting against the newly introduced tax laws are largely exempt from the reforms, says a tax expert, Mr Albert Folorunsho, warning that the demonstrations are being driven by misinformation capable of creating unnecessary tension.

Folorunsho described the agitation as “a dubious way of misinforming the populace to create chaos and resentment”, arguing that available evidence suggests most protesters will not be negatively affected by the new tax framework.

In a submission on the platform of the Capital Market Academics of Nigeria (CMAN), the legal practitioner said an assessment of images and reports from the protests indicates that many participants earn less than N20 million annually.

Under the new tax laws, he explained, individuals within this income bracket are expected to pay less personal income tax, not more.

He added that a significant number of the protesters appear to be artisans, traders and operators of small businesses with annual turnovers below N100 million.

Such businesses, he noted, are fully exempt from company income tax and are not required to file Value Added Tax (VAT) returns under the revised tax regime.

Folorunsho further stated that even protesters who participate in capital market transactions are unlikely to be affected, as individuals with annual turnovers of less than N150 million are exempt from capital gains tax on share transactions.

He said, the primary concerns of these groups are basic daily needs, many of which are now zero-rated for VAT, providing additional relief to low-income earners and small-scale operators. He also pointed out that nuisance levies imposed on small traders and artisans are being harmonised by sub-national governments to reduce the burden of multiple taxation.

“Most of their banking transactions fall below the reporting thresholds required of banks,” Folorunsho said, adding that many sole traders and micro-enterprises are either below the presumptive tax threshold or fall into categories completely exempt from such taxes.

He argued that the groups more likely to face increased tax obligations under the new laws are high-net-worth individuals and large corporations, suggesting that some of them may be encouraging low-income Nigerians, who are largely beneficiaries of the reforms, to protest on their behalf.

Folorunsho urged the public to seek accurate information on the tax reforms, warning that misinformation could undermine policies designed to protect the poor while strengthening Nigeria’s revenue base.

His position aligns with that of the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, who recently said that about 98 per cent of Nigerian workers would be exempt from Pay As You Earn (PAYE) when the new tax law takes effect in January 2026.

Speaking at the 31st Nigerian Economic Summit in Abuja, Oyedele said poor Nigerians would be exempt from personal income tax, while high-income earners and wealthy individuals would pay more under a progressive tax structure. He also disclosed plans to grant tax exemptions to nano and small businesses to protect them from harassment and support job creation.

Oyedele said the reforms are part of President Bola Ahmed Tinubu’s broader fiscal agenda to improve fairness, enhance revenue governance, lower borrowing costs and stimulate private-sector investment, while ensuring that vulnerable Nigerians are not burdened by taxation.

READ ALSO: Senate uncovers $300bn unaccounted crude oil sales