Pastors, Imams Must Pay Tax On Their Salaries — FG

Pastors, Imams Must Pay Tax On Their Salaries — FG

The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has clarified that pastors, imams, and other religious workers are legally required to pay tax on the salaries they earn from churches, mosques, and religious organisations.

Speaking on the podcast “Mic On,” Oyedele explained that although religious institutions themselves are exempt from paying taxes, individuals employed by them do not enjoy the same exemption.

According to him, the law distinguishes between religious bodies—which are tax-exempt—and employees of those bodies, who are treated the same as workers in any other sector.

“The church and the mosque do not pay tax unless they start running businesses as institutions. But anyone they employ — the pastor, the imam, the choir members — are liable to pay tax because they are simply employees working in God’s vineyard,” Oyedele said.

‘Religious workers are not different from other income earners’

Oyedele emphasised that religious workers should not be considered exempt simply because their work is spiritual.

“They are not different from anyone else. The food vendor, the farmer, everyone doing honest work is contributing to society. The constitution requires every citizen to declare their income and pay taxes accordingly,” he added.

He noted that the principle of fairness requires all earners—regardless of their faith or job description—to comply with tax laws once their income crosses the taxable threshold.

New tax regime: What changes in 2026

Oyedele also highlighted adjustments coming into force in January 2026 as part of the government’s wider tax reforms aimed at widening the tax base and strengthening compliance:

• Low-income earners will be exempted from tax under the new threshold.
• Middle-income earners will enjoy reduced tax rates.
• High-income earners will pay higher taxes under a progressive structure.

He stressed that these rules apply equally to pastors, imams, traditional priests, or anyone else, regardless of religious affiliation.

Global data-sharing to monitor remote workers

As part of ongoing fiscal reforms, Oyedele also revealed that Nigeria has signed agreements with over 100 countries to access income data of Nigerians working remotely for foreign companies.

He reiterated that remote workers must self-declare their income, whether the employer is local or international.

The clarification is part of the Federal Government’s efforts to simplify the tax system, improve fairness, and strengthen revenue collection as the new tax regime takes effect in January 2026.

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