By Joshua Tosin Ogunsakin 
On value-added tax (VAT), Enamudu said essential goods and services remain exempt.
“You don’t pay VAT on basic food items, medicals, pharmaceuticals, education and other essentials,” he said.
He also highlighted a rent relief introduced under the reforms.
“If you pay rent as a tenant, you are allowed a relief of 20 per cent of the rent paid, subject to a maximum of ₦500,000,” he said.
Using examples, he explained that while 20 per cent of an annual rent of ₦3 million amounts to ₦600,000, the relief is capped at ₦500,000, and for a rent of ₦1 million, the relief stands at ₦200,000.
Regarding compliance, Enamudu stated that Nigeria operates a self-assessment system for tax clearance.
“The law envisages that you will come forward voluntarily and declare your income,” he said.
While employers remit Pay-As-You-Earn (PAYE) on behalf of workers, he noted that individuals with other income streams must file their returns personally.
“Your salary income is just one line. If you earn rent or run a business, all incomes must be aggregated and declared,” he said.
He added that states would adopt presumptive taxation for informal sector operators such as market women, with modalities determined by each state in line with the principle of economy.
Addressing broader concerns, Enamudu described the new tax law as protective of vulnerable Nigerians.
“The tax act, as passed, is heavily pro-poor. That is actually the reality of the act,” he said.
He clarified that the widely cited ₦800,000 threshold refers to taxable income, not gross earnings.
“It is not that if you earn ₦800,000, you don’t pay tax. The law says if your taxable income is ₦800,000 and below,” he said.
According to him, statutory deductions—including contributions to PENCOM, NHIS, the National Housing Fund, interest on owner-occupied properties, and insurance premiums—are applied before taxable income is determined.
“After all these deductions, if your income is still not above ₦800,000, you will not pay tax,” he said.
Enamudu confirmed that the law is already in force.
“The act became active on the 4th of January 2026. We are already at the implementation stage, though this is a transitional period,” he said.
He added that improved efficiency would gradually expand the tax base.
“When efficiency comes into the tax environment, more people and businesses are captured. Over time, revenue will grow, and the government will be able to meet its obligations.”
Leadership