"Taiwo Oyedele Promises Economic Relief: Tinubu’s Tax Reform Bills Set to Boost Workers’ Income and Support Small Businesses"

 Taiwo Oyedele, the Chairman of the Presidential Fiscal Policy & Tax Reforms Committee, has recently assured Nigerians that the tax reform bills proposed by President Bola Tinubu will significantly enhance workers' net income and alleviate the financial burdens many face. In a message shared on his X account to commemorate Workers' Day, Oyedele emphasized that these reforms are designed to benefit Nigerian workers and should be supported by all stakeholders, including organized labour groups like the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC)

Key Features of the Tax Reform Bills

Increased Disposable Income: The proposed reforms aim to lower taxes, increasing workers' disposable incomes. Notably, the bills include a full exemption from the Pay As You Earn (PAYE) tax for workers earning up to ₦1.3 million annually (over ₦100,000 per month), representing about 35% of all public and private sector workers. Additionally, armed forces members will benefit from this exemption [1].

Support for Small and Medium Enterprises (SMEs): The reforms are expected to significantly support SMEs, with tax exemptions for 97% of these businesses earning an annual turnover of ₦100 million or less. This is part of a broader strategy to stimulate economic growth and job creation. 

Zero Value Added Tax (VAT) on Essentials: To ease the financial strain on households, the bills propose a 0% VAT on essential goods and services, including food, healthcare, and education. This measure is crucial as these items account for approximately 82% of household consumption, particularly benefiting low-income earners who spend nearly all their income on these necessities. 

Tax Incentives for Employment Generation: The tax reform bills also include provisions to encourage employers to hire more workers by offering tax incentives. This is expected to create more job opportunities and stimulate the economy.

Removal of Bureaucratic Hurdles: The reforms aim to simplify the process for wage awards and transport subsidies for low-income earners, removing bureaucratic barriers that have previously hindered these benefits 

Oyedele's message underscores the belief that organized labour will recognize the potential benefits of these reforms and not act against the interests of their members. He expressed confidence that the changes would be a step forward in improving the welfare of Nigerian workers and promoting a more equitable tax system [1].

The proposed tax reforms by the Tinubu administration, as articulated by Taiwo Oyedele, are positioned as a significant move towards enhancing the financial well-being of Nigerian workers while fostering a more conducive environment for small businesses and economic growth.