By Oluwatosin Oladipo
When a new dawn breaks, the cock crows differently. From January 1, 2026, Nigeria’s tax landscape is set for a transformation that smells of fairness, inclusion, and hope. The new Tax Reform Law is being hailed as a “people’s policy,” a soothing balm for the wounds of excessive taxation that have long burdened the common man.
For once, the masses; market women, teachers, artisans, startup founders, and small business owners, are not left behind. As the saying goes, “When the righteous rule, the people rejoice” (Proverbs 29:2).
A Breath of Fresh Air for the Working Class
“Before now, I paid more in taxes than I saved,” says Mr. Adekunle, a Lagos-based schoolteacher earning below ₦1.2 million annually. “But with this new reform, my income becomes tax-free. It’s like God just opened a window of relief for me.”
Under the new system, anyone earning up to ₦1.2 million annually will be exempt from personal income tax, a lifeline for millions struggling under inflation. Those earning the national minimum wage will also walk free of PAYE burdens.
For the first time, government is saying to its people: “Cast your burdens upon me.”
This gesture, though fiscal in nature, mirrors divine compassion. Just as manna sustained Israel in the wilderness (Exodus 16:35), these exemptions aim to sustain the Nigerian worker through economic wilderness—rising prices, stagnant wages, and uncertainty.
Small Businesses, Big Relief
Nigeria’s entrepreneurial class—the hustlers and innovators who make the economy tick—are finally being recognized. Small companies with turnover under ₦100 million will pay zero percent in company tax.
In a country where small and medium enterprises (SMEs) account for over 80% of employment, this exemption is like giving oxygen to a fainting patient.
Aisha Bello, who runs a cassava processing plant in Ogun State, smiles as she hears of the reform. “The government just gave us a fighting chance,” she says. “We’ve been paying multiple taxes—local, state, and federal. This will help us reinvest in our farms and workers.”
The relief extends to agricultural businesses, which now enjoy five-year tax holidays. The nation, long called the “giant of Africa,” seems ready to feed itself again.
As the Bible says, “He that tilleth his land shall have plenty of bread” (Proverbs 28:19). These reforms could mark the beginning of plenty after years of scarcity.
The Ripple Effect on the Economy
The ripple is expected to be wide. Economists forecast that the increase in disposable income will stimulate local demand. Families will have more money to spend on essentials; food, education, and healthcare; thus driving small-scale production.
Moreover, the 0% VAT on basic food items, education, and medical services shows that the government is finally prioritizing human welfare over raw revenue. This is what Jesus meant when He said, “The Sabbath was made for man, not man for the Sabbath” (Mark 2:27). Laws;including tax laws; must serve humanity, not enslave it.
With housing interest deductions, life insurance reliefs, and rent reliefs, the middle class is also set to breathe easier. It is a strategic blend of compassion and prudence; an attempt to rebuild trust between citizens and the state.
Rebuilding the Bridge Between Government and People
For too long, tax has been a word of fear among Nigerians. To many, it meant harassment, double taxation, or mysterious deductions. But these reforms seek to flip the script.
The Presidential Fiscal Policy & Tax Reforms Committee is championing not just numbers, but narratives; stories of inclusion, growth, and national responsibility. The idea is to make compliance rewarding, not burdensome.
As one market trader in Ibadan puts it, “When government no dey collect too much, people go pay with joy.”
This shift from coercion to cooperation could be the real miracle of 2026.
Human Stories Behind the Figures
In the village of Umuahia, Mama Ifeoma—a widow who sells vegetables; will benefit from the VAT exemption on agricultural inputs. No longer will she pay extra for fertilizers or seeds.
In Kaduna, Tunde the mechanic is glad that the sale of his personal car won’t attract capital gains tax. And in Lagos, Amara, a startup founder, can now build her tech business with confidence under the small business exemption rule.
These are not abstract policies they are promises translated into people’s lives.
The Wisdom in Fairness
As the Yoruba adage goes, “Bi a ba fun ni l’owo l’owo, a ma fi owo ra otito” ( “When given fair opportunity, people will buy truth with it.”)
By easing the burden of the masses, government may win back the trust of its citizens. And trust, once restored, multiplies productivity far faster than enforcement ever could.
Biblically, the principle is sound. God’s economy always rewards justice and compassion. In Leviticus 19:13, He warns: “You shall not oppress your neighbor or rob him. The wages of a hired worker shall not remain with you all night until the morning.”
By putting the people first, this reform aligns governance with divine order—where justice and mercy kiss (Psalm 85:10).
Conclusion: A New Covenant of Hope
The 50 exemptions and reliefs may not solve all of Nigeria’s economic problems, but they set a powerful tone: governance can be humane.
It’s a covenant of hope; between the palace and the people, between policy and poverty. If implemented faithfully, it could ignite a silent revolution in the economy, fuelled not by oil, but by fairness.
As the Bible reminds us, “A false balance is abomination to the Lord: but a just weight is his delight” (Proverbs 11:1).
In 2026, Nigeria may finally be weighing its citizens with justice; and that, indeed, is good news worth sharing.
The new tax reform paints a brighter future for ordinary Nigerians. It gives power back to the worker, hope to the entrepreneur, and dignity to the retiree. It reminds us that when leadership is just, the people thrive. Like a farmer sowing in faith, these reforms may yet yield a harvest of prosperityif nurtured with transparency, compassion, and accountability.
“The people who sat in darkness have seen a great light.” – Matthew 4:16
