FG To Raise Personal Income Tax For Wealthy Nigerians 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%, once the Tax Reform Bills are passed into law.

Minister of Finance and Coordinating Minister of the Economy, Wale Edun, disclosed this during a Zoom dialogue meeting in Abuja, noting that government revenue increased by 20% last year, and further tax adjustments would boost infrastructure development.

He stated that the government is committed to tightening expenditure, enhancing agricultural productivity, and launching a 25-year low-interest mortgage scheme to address Nigeria’s housing deficit.

Additionally, Edun highlighted infrastructure projects like the Highways Management and Development Initiative (HMDI), which aims to concession major roads, citing the 125-kilometer Benin-Asaba Highway as an example of private sector-driven funding.

On economic stability, he noted that Nigeria narrowly avoided collapse at the start of the Tinubu administration, with inflation now declining, the exchange rate stabilizing, and government revenues on an upward trajectory.

“The economy grew by 3.84% in Q4 2024, close to our annual target of 3.4%. Inflation has begun to slow, and the cost of petroleum and energy is reducing,” he said.

Edun reaffirmed the government’s focus on attracting private sector investments, leveraging technology for revenue generation, and maximizing income from fossil fuels while transitioning towards sustainable financing models.