Nigeria’s ongoing tax reforms under President Bola Ahmed Tinubu have received a major boost following support from the African Development Bank, as hundreds of thousands of low-income earners begin to benefit from reduced or eliminated tax obligations.

The reforms, implemented in January 2026 and overseen by the Chairman of the Nigerian Revenue Service (NRS), Zaccheus Adedeji, have significantly increased disposable income for workers earning below ₦800,000 annually, many of whom are now exempt from personal income tax.

According to Honourable Bamidele Atoyebi, founder of Accountability and Policy Public Relations, the reforms mark a shift from aggressive taxation to a more equitable system focused on “taxing right, not taxing more.”

“For years, tax policies were perceived as a burden with little visible return,” Atoyebi said. “What this administration has done is to redesign the system so that it protects the poor while ensuring that those with greater capacity contribute fairly.”

He explained that under the new structure, workers earning below ₦500,000 and ₦300,000—previously taxed at rates exceeding 10 percent and 8.7 percent respectively—are no longer required to pay income tax, describing the move as “a financial lifeline for millions of Nigerians.”

To illustrate the impact, Atoyebi likened the reform to “removing weight from those already struggling to climb, while ensuring those at the top carry a fairer share of the load.”

The international endorsement came as the AfDB approved a grant to support the continuation of Nigeria’s tax reforms, signaling confidence in the country’s fiscal direction and reform strategy.

Atoyebi noted that the backing from the AfDB serves as “a strong validation that Nigeria is building a system that balances economic growth with social equity.”

“This is not just a local reform; it is one that has passed international scrutiny,” he added. “It shows that the global financial community sees these changes as sustainable and necessary.”

The reforms also aim to close long-standing loopholes and shift the tax burden toward profitable corporations and high-income earners. By focusing on taxing profits rather than discouraging investments, the government intends to create a more business-friendly environment while increasing public revenue.

Revenue generated from the reforms is being directed toward infrastructure development, including roads, rail systems and energy projects. Officials say this approach ensures that taxes translate into visible improvements in citizens’ daily lives.

Atoyebi highlighted the country’s electricity gap as a key example, citing estimates that about $21 billion is required to provide power to over 120,000 underserved communities nationwide.

He added that growing demand from communities reflects rising public confidence in the government’s capacity to deliver. “We are seeing thousands of communities step forward, expressing readiness to be part of this transformation because they can now see a working model,” he said.

The Managing Director of the Rural Electrification Agency has also acknowledged the scale of the infrastructure deficit, reinforcing the need for sustained funding through improved tax collection.

Atoyebi maintained that the reforms are already reshaping public perception of taxation in Nigeria. “Tax is no longer being seen purely as a burden,” he said. “It is gradually becoming understood as a shared investment in national development.”

He concluded that with improved transparency and targeted policies, the government is laying the foundation for a more stable and inclusive economy.

“As people begin to see better roads, improved electricity, and more money in their pockets, the narrative will continue to change,” Atoyebi said. “This is how trust in governance is built when policy translates into real impact.”