Senator Ireti Kingibe, who represents the Federal Capital Territory (FCT) in the Nigerian Senate, has raised concerns about Nigerians’ awareness of the country’s tax laws, warning that many citizens may not fully understand how the new tax policy will affect them.
In a message reportedly directed at voters, Kingibe claimed that the National Assembly had passed a tax law that would require Nigerians to pay 25 per cent of their earnings in tax, adding that its implementation would begin after the next general election.
She was quoted as saying: “Nigerians are not aware that a tax law has been passed, which requires everyone to pay 25% of their earnings as tax. The National Assembly has already passed this law, and it will swing into action after the election.”
However, the provisions of the Nigeria Tax Act 2025 show that the tax system is more complex than the statement suggests.
Under the new law, personal income tax is calculated using a progressive system, meaning that people with higher taxable incomes pay higher rates.
The rates range from 0 per cent on the first ₦800,000 of annual taxable income to 25 per cent on taxable income exceeding ₦50 million a year.
Importantly, the 25 per cent rate does not apply to a person’s entire earnings. It applies only to the portion of taxable income that falls within the highest tax bracket. This means that the amount an individual pays depends on their income and the applicable tax rules.
For example, a person earning ₦70,000 monthly makes ₦840,000 annually. Assuming the entire amount qualifies as taxable income, only ₦40,000 falls above the ₦800,000 tax-free threshold, before accounting for any other applicable deductions or reliefs.
Similarly, someone earning ₦50,000 monthly, or ₦600,000 annually, may not owe personal income tax under this threshold. However, that does not mean they are completely exempt from taxes.
Such individuals may still pay Value Added Tax (VAT) when purchasing taxable goods and services.
This means that even Nigerians who do not earn enough to pay personal income tax can still feel the impact of the country’s tax system through their everyday spending.
The post “Nigerians To Pay 25% Of Earnings In Tax After 2027 Election” – Senator Ireti Kingibe Raises Alarm appeared first on Information Nigeria.