President Bola Ahmed Tinubu has unveiled a new Personal Income Tax Calculator, designed to help Nigerians understand the impact of the recently signed tax reforms on their earnings. The tool, now live on the federal government’s fiscal reforms portal, is part of Tinubu’s administration’s efforts to simplify compliance, ensure fairness, and strengthen transparency in the country’s tax system.
The President announced the tool on his official X (formerly Twitter) account on Friday, describing it as a landmark step towards creating a fairer system that protects low-income earners while encouraging broader participation in tax compliance.
The online calculator allows individuals to input their monthly or annual income and instantly compare their current tax obligations with those projected under the 2026 reforms.
This comparison highlights whether their tax burden will rise, fall, or remain unchanged once the new rates come into effect.
Tinubu emphasized that the reform package is built on principles of equity and redistribution.
“A fair tax system must never punish poverty or weigh down the most vulnerable,” he said.
“With the new tax laws I recently signed, taking effect from January 2026, we have lifted this burden and created a path of equity, fairness, and true redistribution in our economy.”
Nigeria has long struggled with low tax-to-GDP ratios compared to other African countries. According to the Federal Inland Revenue Service (FIRS), less than 10 percent of Nigeria’s working population is fully compliant with income tax obligations.
The government hopes that simplifying the process through digital tools such as this calculator will boost compliance and widen the tax net.
Economic analysts note that the reforms are also aimed at reducing reliance on oil revenue, which remains volatile due to global price fluctuations.
Instead, the administration is pushing for a more sustainable revenue base, driven by transparent taxation and improved accountability.
One of the highlights of the 2026 reforms is the introduction of progressive tax brackets that shield low-income earners from heavy taxation.
According to details from the Ministry of Finance, individuals earning below a certain threshold will either pay minimal tax or remain exempt.
The calculator illustrates this by showing how higher-income groups will contribute more, while those on the lower rung face little to no additional tax burden.
This approach, Tinubu explained, “ensures progressivity and simplifies compliance in order to deliver a transparent system that works for all.”
The launch of the tax calculator brings Nigeria in line with global best practices, as several countries including the United Kingdom, Canada, and South Africa provide similar tools for their citizens.
These digital platforms not only improve awareness but also build trust between taxpayers and governments by making obligations clearer and predictable.
Nigerians can now use the tool by visiting the official fiscal reforms website: fiscalreforms.ng/index.php/pit-calculator. The platform is optimized for both desktop and mobile use, ensuring accessibility for a wide range of users.
Early reactions from economists suggest cautious optimism.
While many praised the initiative for promoting transparency, some urged the government to ensure that revenues generated from taxes are channeled into visible development projects such as infrastructure, healthcare, and education.
For citizens, the ability to calculate their expected tax has been welcomed as a step toward financial planning.
“At least we now know what to expect and can budget accordingly,” said Chidi Okafor, a Lagos-based software engineer.
The Tinubu administration insists the tax reforms are not just about raising revenue but about renewing hope in the Nigerian economy.
By 2026, the government hopes that broader compliance, digital efficiency, and fairer policies will significantly strengthen Nigeria’s fiscal stability.
As Tinubu put it: “Together, we are renewing hope in the Nigeria of our dreams.
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