Personal Income Tax for Wealthy Nigerians to Rise to 25%, Says Edun

The Federal Government has announced plans to increase Personal Income Tax (PIT) for high-income earners from 18.6% to 25% under the Tax Reform Bills, according to Finance Minister Wale Edun.

Speaking during a Zoom dialogue in Abuja, Edun highlighted the need for increased revenue, noting that Nigeria recorded a 20% rise in tax revenues last year.

Key Highlights from Edun’s Statement:

1. Tax Reforms & Revenue Generation

PIT for wealthy Nigerians will rise to 25%.
The government is tightening expenditure controls to optimize public spending.
Transitioning from concessional and bilateral financing to cheaper funding sources, such as domestic bonds.

2. Economic Stability & Growth

The economy has achieved relative stability over the past 18–20 months.
GDP grew by 3.84% in Q4 2024, nearing the annual target of 3.4%.
Inflation has slowed, dropping 1.3 percentage points between January and February.
Food inflation is also declining.
The exchange rate has stabilized, positively impacting imported goods, healthcare, and education.

3. Infrastructure & Housing Initiatives

Launch of a 25-year low-interest mortgage to tackle housing deficits.
Highways Management and Development Initiative (HMDI) aims to concession major highways to private investors.
- Example: Benin-Asaba Highway (125 km) is being funded entirely by a private company.

4. Oil, Energy, & Public-Private Partnerships

Maximizing revenue from fossil fuels while still viable.
Promoting public-private partnerships (PPPs), joint ventures, and privatization to boost investment.
Petroleum and energy costs have decreased due to sectoral reforms.

5. Pension & Debt Management

The government has issued over ₦700 billion in bonds to clear pensioners’ legacy debt.
Debt servicing as a percentage of revenue has reduced.

Government’s Focus Going Forward

Further economic stabilization to improve the cost of living.
Encouraging private sector investment through incentives.
Leveraging technology to enhance revenue generation from government-owned enterprises.

Edun emphasized that economic indicators are improving, and the government is committed to ensuring sustained growth and financial stability.

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