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This New Tax Law: How Does It Affect the Poor Man on the Street?

By Dave Omokhodion

“Recently I sent ₦5,000 to a woman through her OPay account (not POS) so she could help me give cash to someone close to her—something we do regularly. She asked me to add extra money for ‘charges,’ saying the government has started taxing every transaction now.”
— My personal experience

Last year, Nigerians were asked to prepare for a new tax law meant to regulate how much citizens contribute to government revenue. According to official information, this law is expected to fully take effect from January 2026.

Since then, arguments and counter-arguments have continued. Supporters of the policy insist that the law is necessary, even in this difficult economic period. They argue that it is designed to bridge the gap between the rich and the poor by taxing the wealthy more. In other words, the rich—not the poor—are supposed to carry the burden. On the surface, that sounds like a fair argument.

However, those who claim to understand how the system truly works are warning Nigerians not to be deceived by this narrative. Their point is simple: the so-called “rich” being targeted are the same people who determine the fate of low-income earners. Only a small fraction of poor Nigerians work directly for the government; the majority work under private businesses owned by these wealthy individuals.

The reality is that the rich control manufacturing, transportation, housing, schools, and other major economic activities. They decide prices, wages, and fees. So when new taxes are imposed, they rarely absorb the cost. Instead, the burden is transferred to the ordinary man—through higher prices of goods, increased transport fares, rising rents, and higher school fees.

In the end, the rich do not lose a dime. The poor carry the weight.

What the Government Should Do

To avoid this looming danger, it is crucial for the government to slow down the implementation of this tax law and first put strong regulatory measures in place. There should be clear policies to control the prices of basic goods, transportation fares, housing rents, school fees, and other essential services that affect the average Nigerian daily. This is what is done in more organized and civilized societies.

As Rufai Oseni of Arise TV rightly pointed out, if this tax policy is truly not about “taxing the poor,” then the government must be transparent and deliberate in controlling market forces before attempting to “tax the rich.”

Nigerians have not forgotten the removal of fuel subsidy and the hardship that followed. A new tax law, implemented without proper safeguards, may not produce a different outcome.

Policies should not only favor government revenue; they must also protect and uplift the poorest citizens—the very people the government claims to serve.

*Dave Omokhodion is a student of Business Administration, Enterpreneur, and writer from Lagos

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