A leading policy expert has moved decisively to quell widespread public anxiety, declaring Nigeria’s forthcoming tax reforms a protective shield for the poor and middle class while squarely targeting the nation’s highest earners.
The clarifications came from investment banker and financial analyst, Oscars Sidiku during an exclusive interview on the Inside Scoop program with Fortune Omosola on Adamimogo 105.1FM Ibadan, where he dismantled viral rumours and laid bare the true impact of the changes set for 2026.
Sidiku began by forcefully dispelling one of the most pervasive claims circulating online. “There is nothing like that happening,” he stated, referring to the fear of a blanket 20% tax on bank transfers and savings. “I’m hearing that for the first time this morning. Let me be clear: these rumours are fooling people. If you have a savings account, you earn interest, you don’t lose money.” He stressed that the misinformation was creating unnecessary panic and that no such levy exists.
The core of the new policy, he explained, is a progressive Personal Income Tax (PIT) system designed with explicit equity in mind. Under the new structure, individuals earning less than N800,000 annually, a group encompassing minimum-wage government workers, street vendors, and many small-scale entrepreneurs, will pay absolutely no income tax. “The poor and the middle class are more protected,” Sidiku affirmed. For those earning above this threshold, liability is carefully graduated. A person with an annual income between N800,000 and N3 million, for instance, would pay a 15% rate only on the portion of their income that exceeds N800,000.
The real shift, according to Sidiku, is aimed squarely at the top of the economic ladder. The reforms introduce a top rate of 25% for individuals with annual incomes exceeding M50 million. “The people who don’t want this tax to work are the rich,” Sidiku revealed. “They are going to be paying up to 25% on every ₦50 million they make. These are the people the government wants to capture.” He framed this as a necessary correction for Nigeria, which has one of the lowest tax-to-GDP ratios in the world, arguing that national development goals require a fairer contribution from those most able to pay. “Tax does not know if you are a minister or a CEO,” he noted. “It only knows your income.”
Addressing the vast informal sector, Sidiku clarified that the same N800,000 exemption applies, and taxes are based on profit, not total turnover. While acknowledging the government’s efforts to explain the reforms through media and agencies, he conceded that more grassroots sensitization in local languages is needed to reach every Nigerian.
As the 2026 implementation date approaches, his message offers a clear, if contentious, blueprint: a fiscal overhaul intended to spare the majority while finally compelling the elite to pay what he terms their “fair share.”
