By Anita Dennis
A majority of Nigerian workers have seen tangible improvements in their take-home pay following President Bola Ahmed Tinubu’s economic and tax reforms, the Presidency has disclosed.
Dr. Tope Fasua, Special Adviser on Economic Matters to the President, said the reforms have contributed not only to salary increases but also to lower inflation and steady economic growth, while urging Nigerians to adopt a positive perspective on ongoing reforms.
Speaking in an interview, Dr. Fasua highlighted that, according to recent reports, 90 percent of Nigerian employees benefited from the adjustments in January 2026 salaries alone. “The reforms are designed to reduce the tax burden on people earning less than N25 million per annum, which accounts for roughly 95 percent of Nigerians,” he explained.
He noted that seminars are ongoing across organisations to ensure Human Resources departments understand how to implement the new tax rules. The reforms, he added, are structured to make tax collection more transparent, efficient, and equitable while simultaneously easing pressure on low- and middle-income earners.
Beyond salaries, Dr. Fasua pointed to broader indicators of economic improvement. “Food prices are dropping, exports have increased, imports have reduced, and the naira has strengthened. As of yesterday, the naira reached N1,394 at the official market, the lowest we’ve seen in about two and a half years. Lives are gradually improving,” he said, noting that some sectors, such as agriculture, may perceive challenges due to lower commodity prices.
Dr. Fasua emphasised that Nigeria’s revenue challenges are rooted not in insufficient taxation but in inefficiencies, leakages, and low compliance. He described the reforms as multi-layered, aiming to formalise informal economic activities, improve data collection, and ensure stricter enforcement by the Nigeria Revenue Service (NRS). “About 70 percent of our economy is informal. Part of the reform is to increase formalisation, aiming to reach 80 percent if possible. Compliance has historically hovered around 15 percent, and the reforms are addressing that gap,” he explained.
He also highlighted the effect of the reforms on state budgets, citing states such as Lagos, Enugu, and Niger, which have made repeated adjustments to revenue collection in response to the reforms. “Some states have moved their budgets multiple times since 2019, reflecting a 500 to 1,400 percent increase in collection efficiency. This is the reality of the new tax environment,” Dr. Fasua noted.
On concerns about tax harmonisation and public understanding, Dr. Fasua described initial confusion as temporary. “Whenever you implement a major reform, there are ups and downs and a learning curve. The Senate is finalising all aspects of the law, and guidance will be widely published through the Ministry of Information to ensure clarity,” he said. He stressed that the reforms cover all taxes, from pay-as-you-earn (PAYE) to value-added tax (VAT), corporate income tax, petroleum profit tax, and beyond, including procedural aspects of collection.
Dr. Fasua pointed out that the reforms are the most comprehensive in Nigeria’s history. For the first time, provisions allow manufacturing companies to deduct research and development expenses from taxable income, a move designed to incentivise innovation and industrial growth.
The adviser also discussed broader economic initiatives intended to sustain growth and reduce inflation. “The Minister of State for Finance has outlined policies that will accelerate disinflation by rebooting the economy. The Minister of Economic Planning is finalising a comprehensive development plan. We are targeting growth rates of six to eight percent, not simply accepting projections from external institutions,” he said.
Dr. Fasua concluded with an appeal to Nigerians to embrace the reforms with a constructive mindset. “A few things will have to change in the way Nigerians perceive the economy. Multidimensional poverty is not the same as living below the poverty line. Reforms such as tracking the naira’s real value, boosting exports, and reducing imports are designed to build sustainable prosperity,” he said.
He urged citizens to see the reforms as a long-term effort to strengthen Nigeria’s economy, improve financial inclusion, and create opportunities for growth. “If we face these challenges together and participate actively, we can largely solve our own economic problems. From policymakers to innovators to operators, everyone has a role in making this process successful,” Dr. Fasua concluded.
