Senator Ireti Kingibe has warned Nigerians about a possible increase in their tax burden after the 2027 general election, alleging that the National Assembly has passed a policy requiring citizens to pay 25 per cent of their earnings in tax.
Kingibe made the claim in a recent video while addressing supporters in the Federal Capital Territory (FCT), expressing concern that many Nigerians were unaware of the alleged policy.
According to the senator, implementation could be delayed until after the next general election, potentially increasing financial pressure on households already grappling with rising living costs and declining purchasing power.
“They passed the policy, but fear won’t let them implement it until after the elections,” she said.
Kingibe also claimed that a tax law requiring everyone to pay 25 per cent of their earnings had already passed through the National Assembly and would take effect after the election.
“Nigerians are not aware that a tax law has been passed, which requires everyone to pay 25% of their earnings as tax. The National Assembly has already passed this law, and it will swing into action after the election,” she said.
However, the published provisions of Nigeria’s tax legislation show that personal income tax is not charged at a flat rate of 25 per cent on every Nigerian’s earnings.
What Does Nigeria’s New Tax Law Say About the 25% Tax?
The Nigeria Tax Act 2025 introduced a progressive personal income tax structure that applies different rates to different portions of an individual’s taxable income.
The Act took effect on January 1, 2026, according to the Federal Ministry of Finance. Its Fourth Schedule outlines the applicable personal income tax rates.
Under the law, the rates are structured as follows:
- First ₦800,000: 0 per cent
- Next ₦2.2 million: 15 per cent
- Next ₦9 million: 18 per cent
- Next ₦13 million: 21 per cent
- Next ₦25 million: 23 per cent
- Taxable income above ₦50 million: 25 per cent
The rates apply progressively to taxable income after relevant reliefs and exemptions, rather than imposing a flat 25 per cent charge on every taxpayer.
The distinction is important because the 25 per cent rate applies to the portion of taxable income above ₦50 million, not automatically to an individual’s entire earnings. The Act also provides for income exemptions, including qualifying employment income at or below the national minimum wage.
Will Every Nigerian Pay 25% Tax After the 2027 Elections?
The published tax rates do not support the claim that every Nigerian will pay 25 per cent of their earnings in personal income tax after the 2027 elections.
Under the current framework, the first ₦800,000 of taxable income falls within the zero per cent band, while higher portions of taxable income are taxed at progressively higher rates.
Consequently, a taxpayer’s liability depends on their taxable income, applicable exemptions and reliefs, and the relevant provisions of the law.
The commencement date is also significant. The Nigeria Tax Act 2025 became effective on January 1, 2026, meaning the new framework did not, under its published commencement provision, wait until after the 2027 general election to take effect.
The specific basis for Kingibe’s allegation that implementation is being deliberately delayed until after the election has not been established by the provisions cited above.
Why the Tax Debate Matters to Nigerians
Kingibe’s comments come amid public concern over the cost of living, household purchasing power, wages and the broader effects of economic reforms.
For workers, entrepreneurs and other income earners, understanding the new tax structure is important when calculating expected liabilities and planning personal or business finances.
The reforms have also placed renewed attention on tax administration, compliance and the government’s efforts to establish a more unified tax framework.
Clear public communication is therefore essential to help Nigerians distinguish between the tax rates prescribed by law and claims about how those rates may affect individual taxpayers.
What Nigerians Should Know
The Nigeria Tax Act 2025 establishes a progressive personal income tax system, with rates ranging from zero to 25 per cent across different taxable income bands.
While Senator Ireti Kingibe has alleged that Nigerians could face a 25 per cent tax after the 2027 elections, the published law does not prescribe a universal flat tax of 25 per cent on everyone’s earnings.
The law’s commencement date is January 1, 2026, and its published rates do not support the assertion that the 25 per cent rate will automatically apply to all Nigerians after the election.
Taxpayers seeking to understand their obligations should consult the legislation and official guidance from the relevant tax authorities.
Sources: Nigeria Tax Act 2025 — National Assembly; Federal Ministry of Finance — Tax Acts implementation guidelines.