Nigerian workers, particularly those on modest incomes, are set to benefit significantly from the country's newly enacted tax legislation, according to insights from a leading tax technology firm. Taxaide Technologies Limited (Taxtech) has clarified that the reform is designed to put more money in the pockets of low and middle-income earners.
Progressive Tax Framework Explained
Speaking ahead of the company's 10th Anniversary and the 2025 Africa Data Security Conclave (ADSC), Taxtech's Executive Director, Oyeyemi Oke, detailed the law's provisions. He stated that the framework establishes a clear, income-based threshold that determines tax liability.
Individuals earning the national minimum wage will be completely exempt from paying personal income tax under the new system. Oke defined the "low-income" bracket as those earning from roughly 70,000 Naira monthly up to 2.1 million Naira annually.
"If you're earning between 70,000 and up to 2.1 million, you wouldn't pay higher taxes. Actually, some will not pay taxes at all, and those that will even pay taxes... will be paying lower taxes," Oke explained. He emphasized that the tax burden only increases for earnings above the 2.1 million Naira annual threshold.
Boosting Spending Power for the Majority
Oke described the policy's core objective as enhancing the financial capacity of Nigeria's working class. By reducing the tax rate for lower-income groups, the law directly increases their disposable income.
"The impact of the law... is actually that people of low income... will actually have more money to spend, which will increase what we call the purchasing power," he noted. Conversely, he confirmed that high-income earners will face a higher tax rate, characterizing the system as deliberately progressive to redistribute economic benefits.
He also addressed public concerns, suggesting that much of the controversy stems from a misinterpretation of the law's details, and affirmed that the reform is largely positive for the majority of Nigerian workers.
Taxtech's Broader Mission: Data Security for Africa
The tax law discussion occurred alongside preparations for the 2025 Africa Data Security Conclave (ADSC). Taxtech's CEO, Bidemi Olumide, framed the event as a crucial platform for addressing the continent's unique digital challenges.
"Our story is simple: we automate processes and we secure data," Olumide stated. "ADSC is where we call Africa together to discuss data security issues and design solutions tailored to our context. We cannot continue to adopt Western approaches wholesale."
Echoing this sentiment, Olugbenga Sile, Executive Director and Partner for Management Support Services at Taxtech, stressed the inclusive nature of the digital security conversation. "The ADSC is a conversation everyone needs to join. You don't need to be a digital security expert. AI is now part of everything we do," Sile remarked.
The firm positions itself as a key player in both fiscal technology and data protection, aiming to shape a more secure and economically equitable digital future for Nigeria and Africa at large.
