The new Nigerian tax law brings both relief and challenges for workers.

• Positives: Low-income earners are exempt from tax, essentials like food and healthcare stay VAT-free, and small businesses get relief. The system is more progressive—higher earners pay more while the poorest are protected. It also simplifies taxes and improves transparency.

• Negatives: Some goods and services may cost more as businesses pass on taxes. States may lose revenue since more workers are exempt. Middle- and high-income earners feel a heavier burden, and digital compliance may be difficult for smaller businesses. Inflation and uneven implementation remain risks.