For many Nigerian workers, the much-talked-about Personal Income Tax (PIT) reforms have arrived with a whimper rather than a bang. While some employees say their take-home pay has increased slightly, others insist the difference is too small to ease the growing pressure of living costs.
Tolulope Ifeanyi, who works in the financial services sector, described her own adjustment as barely noticeable. “Mine increased, oh — just a little, sha,” she said.
For media practitioner Joshua Austin, the increase was more symbolic than helpful. “My salary increased, but it is not enough to buy me shawarma for one evening,” he joked, noting that his preferred wrap costs about ₦2,500. “As for an increase, yes, it increased — but what is the value of the increase?”
On social media, reactions have been equally lukewarm. A verified X user, Gabriel Bolatito, said the slight reduction in PAYE tax matched expectations and resulted in only a marginal improvement in net pay.
Others echoed similar sentiments. Uchechi Nwankamma, a contract staff at Access Bank in Lagos earning between ₦200,000 and ₦250,000 monthly, said her take-home pay is “slightly higher than before.”
“It’s not a huge change, but it helps cover some of the rising costs of living,” she said.
Across interviews with workers in both the public and private sectors, reported salary increases ranged from about ₦6,000 and ₦5,000 to as little as ₦3,000, ₦1,443 — and in some cases, just ₦400.
Responding to the feedback, the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, said the committee had received confirmations from workers who noticed lower PAYE deductions.
“We are pleased to note the feedback from workers who have received their salaries for January 2026 and confirmed a reduction in their PAYE tax, resulting in higher take-home pay under the new tax laws,” Oyedele wrote on X on Monday.
He added that the committee, working with the Joint Revenue Board, would hold an engagement session with HR directors, payroll managers, CFOs and tax managers on Wednesday to ensure proper understanding and implementation of the reforms.
Under the new tax regime, individuals earning the national minimum wage or less are exempt from personal income tax. Employees with an annual gross income of up to ₦1.2 million — roughly ₦800,000 in taxable income — are also exempt. The reforms further reduce PAYE for those earning up to ₦20 million annually and exempt gifts from taxation.
Despite these provisions, many workers say the impact has been modest. Banker Adetunji Morgan said his salary increased by about ₦5,000. “Yes, the salary increased. I think it increased by about ₦5,000 for me,” he said.
For some, the picture is even less clear. A Lagos State civil servant, Adedayo Lawal, said he could not immediately tell how much the PAYE adjustment affected his pay, especially with a partially paid Yuletide allowance complicating the figures. “I wasn’t expecting a significant increase anyway,” he said.
Not everyone, however, saw an improvement. In the comment section of Oyedele’s post, several users complained of higher deductions and reduced take-home pay. One user, Rasha (@rasha2you), wrote: “Why is my take-home lesser? Stop acting like it’s everyone paying less tax.” Another, Odogwu Michael, said his tax increased despite earning barely enough to meet basic needs, while High Bee (@ibukun36180571) claimed his tax did not reduce and his salary declined.
Oyedele clarified that workers earning below ₦25 million annually would retain the benefits of the reforms, while those earning above that threshold could face higher taxes unless employers review payroll structures to absorb part of the burden.
Development economist Dr Aliyu Ilias said the reforms were initially presented as progressive, but early implementation suggests potential distortions.
“Recent developments, particularly charges applied to USSD transactions and other bank services, show that a 7.5 per cent levy is being imposed across multiple layers,” he said, warning that such costs could strain household finances and weaken purchasing power.
The reforms have not been without controversy. Lawmakers had earlier raised concerns over discrepancies between the versions of the laws passed by parliament and those gazetted, prompting official clarifications. Despite this, the government has pushed ahead, insisting the changes are necessary to boost disposable income and streamline tax administration.
From a technical standpoint, PwC Partner for Tax Reporting and Strategy, Kenneth Erikume, explained that the graduated tax structure means income up to ₦800,000 is now tax-free, with progressive rates thereafter and a top rate of 25 per cent on income above ₦50 million.
According to Erikume, individuals earning below ₦25 million annually are more likely to see improved take-home pay, while those above that level may face higher tax obligations — a gap organisations will need to manage carefully from a human capital perspective as implementation continues.
