The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has reiterated that pastors, imams, and other religious workers are required to pay personal income tax on the salaries and allowances they receive from their religious institutions. His clarification comes amid growing public debate over the tax obligations of religious leaders, a sector many Nigerians assume is exempt from statutory deductions.
Speaking on the popular podcast Mic On, Oyedele explained that while religious institutions themselves enjoy tax exemptions under Nigerian law, these exemptions apply strictly to the organizations—not the individuals who work for them. Churches, mosques, and faith-based organizations are classified as non-profit entities, which shields them from corporate taxes as long as they refrain from commercial business operations. However, employees of these institutions, whether spiritual or administrative, are legally considered workers earning income, and therefore, must comply with personal income tax regulations.
He emphasized that the misunderstanding arises from conflating the tax-exempt status of religious bodies with the tax liability of their workforce. “What the law says,” Oyedele noted, “is that the church and the mosque will not pay tax unless they start doing business as an institution or organization. But anybody they pay—whether it’s the pastor, whether it’s the choir—is liable to tax because these people are just working. It only happens that they are working in God’s vineyard.”
‘Religious Workers Are Not Different From Anyone Else’
Oyedele reinforced the principle that personal income tax applies uniformly across professions. He argued that workers in religious environments are not fundamentally different from farmers, traders, teachers, or artisans who also contribute to the well-being of society. Many sectors, he noted, could be described as doing “God’s work,” yet this does not exempt them from paying taxes.
“The person who is selling food—do you think they are not doing the work of God?” he asked rhetorically. “The farmer who goes to the farm so that we can eat is doing God’s work. Everybody who earns income is required to declare it honestly and pay tax accordingly.”
The Nigerian constitution, he added, mandates all citizens to fulfil their civic responsibility by remitting applicable taxes based on their income levels. Religious affiliation, he clarified, does not alter this statutory obligation.
How the New Tax Thresholds Will Apply
As part of the broader fiscal reforms set to take effect in January 2026, Oyedele highlighted changes to the tax brackets designed to improve fairness and reduce the burden on low-income earners:
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Low-income earners will be exempt from paying tax entirely starting next year.
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Middle-income earners will enjoy reduced tax rates.
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High-income earners will pay more under a progressive tax structure.
Religious leaders fall under the same system. If their earnings exceed the tax threshold, they are required to pay—regardless of their role or religious beliefs.
“We cannot create a society where certain religions or positions are considered superior to others,” Oyedele said. “Once your income passes the exemption threshold, you must pay tax. It is that simple.”
A Broader Push for Compliance
These clarifications are part of the Federal Government’s ongoing efforts to broaden Nigeria’s tax base, improve compliance, and ensure a more equitable fiscal system. Oyedele’s committee has been actively conducting public engagements to demystify tax laws, especially around the digital and remote-work economy.
In a recent webinar hosted by the National Orientation Agency, themed Simplifying Nigeria’s Tax System, Oyedele revealed that Nigeria has signed data-sharing agreements with over 100 countries. This would help identify Nigerians earning income from foreign companies or digital platforms, especially remote workers who often fall outside traditional tax tracking systems.
Regardless of where the income originates—whether local or international—every remote worker based in Nigeria is required to declare and remit taxes. “The obligation is on the individual,” he stressed, noting that increased global cooperation will make tax evasion more difficult.
Oyedele’s message underscores the government’s commitment to enforcing tax fairness across all sectors, including religious institutions. While Nigeria continues to respect the non-profit status of religious organizations, individuals who earn a salary—pastors, imams, choir members, or administrative staff—remain responsible for fulfilling their personal tax obligations.
