The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has responded to claims that Nigeria’s new tax law will make poor people pay taxes, describing the analysis behind the claims as technically inaccurate and misleading.
In a detailed public response, Oyedele said some commentaries circulating online relied on incorrect assumptions and mixed up key concepts that guide tax policy design. He noted that this was why the committee had earlier invited content creators to a training session on the tax reforms, an invitation he said was declined by one of the critics.
“I have previously acknowledged your efforts to educate the public on tax reform. However, some of your contents, including this video, contain technical inaccuracies misleading your audience,” Oyedele said. He added, “This is precisely why we invited some content creators to a training session on the tax reforms to enhance their understanding for better context and informed public engagement.”
Oyedele also addressed allegations that the engagement session was meant to promote the new tax laws. “For the record, no participant was paid or asked to promote the tax laws. Hundreds of creators attended, including many with larger followings,” he said, insisting that the goal was education rather than publicity.
Responding directly to the substance of the claims made by Don Aza, Oyedele said the analysis confused household income with individual income. “Household income and individual income are not the same. You referenced my comment on household income but went ahead to do your entire analysis based on individual income,” he said, stressing that the distinction significantly affects how poverty and tax exposure are measured.
On the use of international poverty benchmarks, Oyedele said the figures cited were both outdated and incorrectly applied. “You assert that poverty must be determined based on the international poverty threshold of USD 3 per day and then you applied it incorrectly. First, the threshold was USD 2.15 per day until June 2025, same month the tax bills were signed into law. Second, you applied market exchange rate instead of purchasing power parity,” he explained.
He pointed to local data sources for better context, saying, “If you wish to understand the Nigeria context, you may find the Nigeria Living Standards Survey by the NBS in collaboration with the World Bank useful.”
Oyedele further challenged the treatment of the ₦800,000 threshold in the analysis, saying it was wrongly assumed to represent gross income. “Taxable income is not the same as gross income. Treating ₦800,000 taxable income as gross income is incorrect and materially alters your analysis,” he said.
Addressing concerns around minimum wage earners, he said the law clearly protects them. “The law expressly exempts the national minimum wage from personal income tax. Insisting that people who earn the national minimum wage will be taxed is incorrect,” Oyedele stated.
While defending the reforms, Oyedele said debate was welcome but must be grounded in accurate information. “Proper understanding is important for constructive public debate. If you’re concerned about the tax burden on low-income earners and small businesses, it would be helpful if you also inform your followers the taxes these people currently pay and whether the new tax law is better or not,” he said.
He warned that partial or incorrect information could hurt the very people being defended. “You may get the clicks and views by presenting incomplete or incorrect information fueling unnecessary discontent but ultimately you are harming the very audience you seek to inform,” Oyedele said.
He concluded his response by urging critics to separate opinion from fact. “Disagreement about public policy is healthy, but it must be grounded in knowledge, not sentiments. Present your opinion if you have a different perspective, rather than asserting that others are wrong or dishonest. You can do well while also doing good,” he said.
