Good news for Nigerians: starting January 1, 2026, the new tax system introduced by President Bola Tinubu’s administration is set to ease the tax burden on the majority of people, especially the youth and small business owners. Dr. Tope Fasua, the President’s Economic Adviser, revealed during the Youth National Discourse in Abuja that those earning one million naira or less annually won’t pay any tax. That means if you’re making around 83,000 naira per month, you’re off the hook!
Small businesses with turnovers of up to 50 million naira will also be exempt from all taxes including VAT. The government is focusing on taxing actual profits, not revenues, and is targeting higher earners, particularly those in the informal sector who have been dodging taxes.
Fasua encouraged young Nigerians to move beyond simple buy-and-sell business models and shift towards innovative entrepreneurship that adds value. He praised the government’s tough reforms on petroleum subsidies and foreign exchange, highlighting positive signs like dropping inflation, rising growth rates, and stronger reserves.
He also urged the youth to stay upbeat, reminding them that Nigeria is the best place to prosper.
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