The 2026 fiscal plan of Nigeria is a radical change in the management of personal income tax (PIT) due to long-term structural malpractices, small tax base and unstable revenue flows created by relying on oil. With the Nigeria Tax Act 2025 and the other supporting legislation, the reform establishes a much high tax-free limit, simplified progressive taxes, introduction of mandatory taxpayer identification numbers, and clear specifications on taxing the digital and informal economies. This paper critically analyses the origin of the reforms, its main characteristics and the implication in terms of classes to the Nigerian workers- low-income earners, middle-income, high-income earners, the participants of the informal sector as well as expatriates. Although the reforms increase the vertical equity, decrease administrative fragmentation, and bring Nigeria into the international tax standards, their actual implementation is dampened by inflationary pressures, fiscal drag, capacity gap between the administrative capacity, and disparities in enforcement. The conclusion of the analysis is that the success of the 2026 framework will be determined and relied not only on the legislative ambition but also on the implementation of the structure, and strengthening of the institution as well as frequent adjustments to maintain progressivity and trustworthiness among taxpayers
Ogbomah et al. (Wed,) studied this question.