President Bola Ahmed Tinubu has signed into law four landmark tax reform bills, a move hailed by top government officials as a generational step toward building a more inclusive and efficient fiscal framework for Nigeria.

Among the major provisions of the newly signed laws, Nigerians earning less than ₦250,000 monthly will now be exempted from paying income tax. This was disclosed by Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, during a live appearance on Channels Television’s Politics Today shortly after the President signed the bills on Thursday.

“This tax law will not give you cash in your pocket, but at least it won’t take your cash away if you are poor,” Oyedele said, noting that the exemption aims to ensure that poverty is not taxed. “We have eliminated the tax component for people at the bottom, we have reduced it for people in the middle, and we have increased slightly for people at the top.”

According to Oyedele, the definition of poverty used by the committee was adapted to local realities, taking into account the average Nigerian household. “We debated this question thoroughly,” he said. “When we did the maths, it gave us ₦250,000 as a survival threshold for an average family of five with two earners. Anyone earning below that amount should not be taxed.”

He added that the new tax laws, which will take effect from January 2026, are “efficiency-driven, growth-focused, and people-centric.” The reforms are expected to widen the tax base, close the estimated 70% collection gap, and shift the burden away from the poor while cracking down on evasion at the top.

The Chairperson of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, described the signing as the happiest day of his life and called the achievement “a dream come true.”

Senate President Godswill Akpabio, speaking at the signing ceremony, commended President Tinubu’s leadership, saying, “We have always known that you are a thinker, that you are intellectually sound, and that you care for your country. You campaigned based on change. This law will last for generations to come.”

Akpabio also acknowledged the commitment of the National Assembly, praising Speaker Tajudeen Abbas and lawmakers for rallying around what he described as a “national interest project.”

President Tinubu’s bold fiscal reforms, including the tax laws and earlier decisions like subsidy removal and FX unification, have drawn applause from international financial institutions and domestic analysts alike.

“This is history,” said FIRS boss Adedeji. “History will remember you for good for transforming our country because you went for a fundamental reform.”

The reforms signal the Tinubu administration’s broader commitment to fiscal restructuring and sustainable economic development through a transparent and equitable tax regime.