FACT-CHECK: No, Nigeria Has not Passed a Tax Law Requiring all Citizens to Pay 25% of their Earnings

BY: Sonaike Peter 

Claim:

A new tax law requiring Nigerians to pay 25% of their earnings has been passed, but has not been implemented. The passed but yet-to-be implemented tax law will be enforced immediately if the Nigerian President,  Bola Ahmed Tinubu, wins the 2027 presidential election.

Verdict:

False! There is no evidence substantiating the claim that a tax law mandating Nigerians to pay 25% of their earnings has been passed but yet to be implemented.

Full Text:

Nigerian Senator Ireti Kingibe, representing the Federal Capital Territory Abuja, claimed that Nigeria’s National Assembly has passed a tax law that will require Nigerians to pay 25% of their earnings or salaries if implemented.

Senator Ireti made this statement while addressing a group of people at a particular gathering.

Addressing the people in Pidgin English, Senator Ireti maintained that the Nigeria’s Senate had long passed the tax law but has yet to  implement it due to what she claimed to be its fear of the people, while urging them(Nigerians) to rise to actions intended to change the trajectory of the country.

In a 90-seconds video seen by FactCheckAfrica, Senator Ireti could be heard blaming the hardship experienced by Nigerians on the government, encouraging the people to vote the ruling party, the All Progressive Congress(APC), out of power.

Senator Ireti said,”As the country no sweet us, na we go change am. Na we go stand up and talk say enough is enough. E don do.”

She added, “How you expect people to manage? Electricity, you increase am. Now tax wan increase to 25 percent of wey you earn, the one wey you get sef never do am.”

Verification:

Findings showed that the claim by Senator Ireti that the Nigerian Senate has passed a tax law requiring Nigerians to pay 25% of their earnings is false.

A review of the Nigerian Tax Act 2025 by FactCheckAfrica revealed no prescription of 25% personal income tax for every Nigerian.

Senator Ireti’s assertion that the legislation exists for public consumption is not substantiated as it is contained in the Nigerian Tax Act 2025. Section 58(1) and the Fourth Schedule of the Nigeria Tax Act 2025 establish a progressive personal income tax system rather than a flat 25% tax on every Nigerian.

The Act stipulates that, after applicable reliefs and exemptions, the first #800,000 of taxable income is taxed at 0%, the next #2.2 million at 15%, the next #9 million at 18%, the next ₦13 million at 21%, and the next ₦25 million at 23%. 

Only taxable income exceeding ₦50 million falls within the 25% tax band. This statutory provision contradicts the claim made by Senator Ireti that every Nigerian is required to pay 25% of their earnings. 

Additionally, no evidence has been presented to support the allegation that implementation of the purported tax law has been deliberately postponed until after the 2027 presidential election or that its enforcement would depend on President Bola Ahmed Tinubu’s re-election.

Conclusion:

The claim that Nigeria has passed a tax law requiring every Nigerian to pay 25% of their earnings, with implementation supposedly postponed until after the 2027 presidential election, is false as it is  unsupported by the available evidence.

A review of the Nigeria Tax Act 2025 by FactCheckAfrica does not substantiate the allegation of a 25% personal income tax. No verified evidence has been presented to establish that the alleged tax measure is being withheld until the outcome of the 2027 presidential election.