By Okoi Obono-Obla
I have watched the video circulating where my distinguished colleague, Senator Ireti Kingibe, representing the FCT, warns that Nigerians will “pay taxes beyond your capacity in 2027” and that everyone will be required to pay 25% of their earnings after the 2027 election.
With respect, this claim is incorrect in law and misleading in fact.
1. What the law actually says
The tax reforms are not one secret policy waiting for after elections. They are four Acts already passed by the National Assembly and signed into law by President Bola Ahmed Tinubu in June 2025:
Nigeria Tax Act, 2025
Nigeria Tax Administration Act, 2025
Nigeria Revenue Service (Establishment) Act, 2025
Joint Revenue Board (Establishment) Act, 2025
All four Acts commenced on 1st January, 2026. They are already in operation. There is nothing being hidden until after 2027.
2. There is no flat 25% tax on all Nigerians
The Fourth Schedule to the Nigeria Tax Act 2025 provides a progressive Personal Income Tax table, not a flat tax:
First N800,000 of chargeable income – 0%
Next N2.2m – 15%
Next N9m – 18%
Next N13m – 21%
Next N25m – 23%
Above N50m – 25%
This means a person earning N1m per annum pays 0% on N800k and 15% on N200k — a total of N30,000, or 3% effective. Only the portion of income above N50 million is taxed at 25%.
There is no provision in the Nigeria Tax Act, the Nigeria Tax Administration Act, or the Nigeria Revenue Service Act that imposes a flat 25% tax on every Nigerian’s earnings.
In fact, the Act exempts those earning minimum wage, exempts the first N800k, allows rent relief of 20% of rent paid up to N500k, and grants 0% company income tax to small companies with turnover of N100m or less. VAT remains at 7.5%.
3. Why this matters
We are entering an electioneering period. It is tempting to weaponize tax reform to scare voters and paint the present government as anti-people.
But tax policy is too serious to be reduced to propaganda. Nigerians deserve honest debate. If we disagree with the reforms, let us debate the actual provisions — the progressive bands, the compliance costs, the need to curb multiple taxation by states — not invent a provision that does not exist.
I urge Senator Kingibe, whom I hold in high regard, to kindly refer the public to the specific section of the Acts that imposes this alleged 25% flat tax. There is none.
Let us inform, not alarm, our constituents.
