The FCT senator claims Nigerians could face a 25% tax on their earnings after the 2027 general election, but the provisions of the Nigeria Tax Act 2025 show that the rate is not applicable to everyone.
Senator Ireti Kingibe, who represents the Federal Capital Territory (FCT) in the Senate, has raised concerns over Nigeria’s tax reforms, claiming that a law requiring Nigerians to pay 25 per cent of their earnings as tax could be implemented after the 2027 general election.
In a statement circulating online, Kingibe alleged that the National Assembly had already passed the law but was delaying its implementation until after the elections.
According to the senator, many Nigerians are unaware of the alleged policy and its potential implications for their finances.
However, the claim that every Nigerian will pay 25 per cent of their earnings as tax does not accurately reflect the provisions of the Nigeria Tax Act 2025.
The Act, signed by President Bola Tinubu on June 26, 2025, took effect on January 1, 2026, introducing a progressive personal income tax system.
Under the law, the first ₦800,000 of taxable annual income is taxed at zero per cent, while higher income bands attract progressively increasing rates, reaching a maximum of 25 per cent on taxable income above ₦50 million.
This means the 25 per cent rate is not a flat tax imposed on every Nigerian. The amount payable depends on an individual’s taxable income and the applicable provisions of the law.
The law’s commencement date also means that the new tax framework was already in effect before the 2027 general election.
Kingibe’s remarks have renewed public attention to the tax reforms and their potential implications for workers, business owners and households amid continuing concerns over the cost of living.
The discussion highlights the importance of public awareness and accurate information about tax obligations, exemptions and the rates applicable to different income levels as Nigerians assess the impact of the new tax framework.
