Good News for Roadside Traders and Tailors: New Tax Laws Mean More Money in Your Pocket!

Nigerian artisans, traders, and low-income workers are the biggest winners in the country’s latest tax overhaul, according to Taiwo Oyedele, the man leading the federal government’s fiscal reform team.

Speaking at a lively town hall meeting organized by SMEDAN in Abuja this Wednesday, Oyedele declared that the era of “taxing poverty” is officially over. He noted that for far too long, those at the bottom of the economic ladder the mechanics, tailors, and petty traders bore a disproportionate tax burden while struggling to survive.

“It’s time for you to rest,” Oyedele told the audience, emphasizing that the new laws, which kicked off on January 1, 2026, were built to give everyday Nigerians a much-needed financial breather. He revealed that about 98% of the workforce will either stop paying income tax entirely or see their tax bills drop significantly.

For the millions of small business owners across the nation, the news is even better. Any business making less than N100 million a year is now legally exempt from paying corporate income tax and VAT. This move is designed to help “nano” and “micro” businesses grow into larger companies without the fear of being crushed by multiple levies.

The impact is already being felt in bank accounts across the country. Oyedele shared that feedback from the first January salary cycle shows workers are taking home more cash than they did last month. Beyond just lower taxes, the government has also removed VAT from basic necessities like food, education, and healthcare to help families manage the cost of living.

To ensure these reforms aren’t just on paper, the government has established a “Tax Ombudsman” a dedicated office where small business owners can report harassment or unfair treatment by tax collectors. Oyedele urged artisans to embrace the new system, noting that a fairer tax environment is the “secret sauce” for Nigeria’s long-term prosperity.