Let’s talk about something that quietly touches every pocket in Nigeria right now tax.
See ehn, whether you’re earning ₦100k or ₦10m monthly, your take home has shifted. The numbers might look small at first glance, but when you add it up over a year, you’ll realize it’s the cost of your child’s school fees, the capital for that business you’ve been dreaming of, or even land in Epe.
So, let’s break it down the way you and I understand it, not all that “tax bracket” grammar. Just plain gist.
Imagine two friends earning ₦1m monthly.
- Under the old tax system: ₦74k went to tax. Take-home: ₦925k.
- Under the new rules: ₦71k went to tax. Take-home: ₦929k.
Looks like a small gain, right? You’d probably think, “Abeg, ₦4k extra is transport money for the month.”
But wait till we climb higher up the salary ladder.
When your income grows, the tax bites harder
Now picture you earn ₦2m monthly.
- Old tax: ₦161k. Take-home: ₦1.83m.
- New tax: ₦186k. Take-home: ₦1.81m.
That’s ₦300k gone in a year. Do you know what ₦300k means in today’s Nigeria? It’s one year’s school fees in some decent private schools.
Now, at ₦5m monthly:
- Old tax: ₦361k. Take-home: ₦4.64m.
- New tax: ₦404k. Take-home: ₦4.59m.
That’s ₦500k extra in tax yearly. Enough to buy seed capital for a decent small business.
And if you’re one of the rare few earning ₦10m monthly:
- Old tax: ₦930k. Take-home: ₦9.07m.
- New tax: ₦1.07m. Take-home: ₦8.93m.
That’s ₦1.7m extra gone every year land money around Epe or Ibeju-Lekki.
On paper, the tax is “progressive” the richer pay more.
But in reality, inflation has turned everything upside down. What ₦500k could buy 10 years ago, ₦2m can barely handle today. That means the so-called “comfortable” middle class is paying more in taxes while also fighting with food prices, rent, fuel, and school fees.
So, your ₦2m today is not the same as yesterday’s ₦2m. It’s shrinking before your eyes.
What the wealthy do differently
Here’s the blunt truth: wealthy Nigerians don’t fight tax with shouting, they fight it with planning.
They know the rules and use them. For example, they:
- Max out pension and insurance deductions.
- Move income into companies (so they can claim expenses).
- Invest in real estate and exports where returns outpace inflation.
- Use calculators like fiscalreforms.ng to plan ahead.
While many of us are just vexing and clapping for NEPA light, they are quietly structuring their money to work smarter.
Let’s be honest: countries like the US, UK, and Canada pay way higher taxes than Nigerians.
The difference? People there see value for money. They get roads, constant power, working healthcare, functioning systems that encourage enterprise.
Here, if the government keeps collecting more without building trust, people won’t pay happily. Instead, they’ll look for creative ways to hide their income, and the economy won’t grow. True wealth only thrives in fairness and accountability.
This is where your own role comes in. No need to panic, but don’t stay blind either.
Here’s how to take control:
- Know your taxable income. Don’t just collect salary; understand how much the government is quietly removing.
- Max your deductions. Use pension, insurance, or mortgage deductions fully. They reduce your taxable income.
- Diversify smartly. Invest in assets not heavily taxed like real estate, exports, or even dollar-based stocks.
- Create side income. Don’t rely on salary alone. Build income streams that grow faster than inflation.
It’s not about escaping tax, it’s about being smarter than the system so your money doesn’t shrink faster than you can earn it.
The Bible puts it this way: “Sow your seed in the morning, and at evening let your hands not be idle, for you do not know which will succeed, whether this or that, or whether both will do equally well.” (Ecclesiastes 11:6).
The real winners are not those who just complain about taxes or clap for others who are making moves. The winners are those who act, those who restructure, invest, and multiply quietly while others are shouting on Twitter.
Your salary today may not stretch as far as it used to, but with wisdom and planning, you can make sure your money works harder than the taxman.
Grab the gist?
