Kingibe’s 25% tax warning: What Nigeria’s tax law actually says [VIDEO]

Senator Ireti Kingibe has claimed that Nigerians will be required to pay 25 percent of their earnings in taxes after the next elections, but provisions of the Nigeria Tax Act indicate that the claim does not accurately reflect the law.

Kingibe, who represents the Federal Capital Territory (FCT) in the Senate and has been linked to the African Democratic Congress (ADC), made the claim in a video circulating online.

In the video, the senator said a tax policy had already been passed into law but would not be implemented until after the elections, suggesting that Nigerians would face a 25 per cent tax on their earnings.

However, the provisions of the Nigeria Tax Act 2025 do not establish a flat 25 per cent personal income tax rate for all Nigerians.

President Bola Tinubu signed the Nigeria Tax Act into law on June 26, 2025, as part of the Federal Government’s tax reform programme. The law took effect on January 1, 2026.

Under the new tax framework, personal income tax is calculated using a progressive system, meaning the applicable rate increases as taxable income rises.

The law provides tax relief for individuals earning ₦800,000 or less annually, exempting them from personal income tax. For taxpayers earning above that threshold, rates increase progressively from zero per cent to a maximum of 25 per cent.

The highest rate applies only to taxable annual income exceeding ₦50 million, rather than to the earnings of every Nigerian.

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The distinction is significant because a progressive tax system does not require every taxpayer to pay the same percentage of their income. Instead, the amount payable depends on the taxpayer’s income and the applicable tax bands.

Consequently, the claim that every Nigerian will pay 25 per cent of their earnings after the elections is inconsistent with the tax rates and exemptions outlined in the legislation.

The senator’s reference to implementation after the elections also differs from the law’s commencement date, as the Nigeria Tax Act became effective on January 1, 2026.

The tax reforms have generated public debate over their implications for workers, businesses and household finances, particularly amid concerns about the cost of living and the broader impact of government fiscal policies.

While the law introduces a maximum personal income tax rate of 25 per cent for high-income earners, it does not impose that rate universally on all Nigerians.