Economic and Financial Review


J. O. Osakwe


Central Bank of Nigeria, Research Department.


Personal income tax, Nigeria, Tax reform


The recent reform of Individual Income Taxation in Nigeria entails generous tax reliefs and allowances granted to tax payers. The reform aims at increasing the disposable income of workers so that they can adjust for the impact of inflation and the rising cost of living. Other objectives of the reform include alleviation of poverty, redistribution of income and promotion of economic development. The paper examined in detail the extent to which these objectives have been achieved by the reform. The study showed that the increase in the disposable income of workers particularly in the low income group was too insignificant to enhance their purchasing power to a level that would enable them to combat the rising cost of living or alleviate poverty.





Recommended Citation

Osakwe, J. O. (1999). Recent reforms in personal income taxation in Nigeria. Economic and Financial Review, 37(3), 18-43.



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