In this Explainer I will be addressing the misconceptions around the income tax provisions in the Nigeria Tax Act, 2025. The reality is that the income tax paid by MAJORITY of Nigerians will reduce following the new personal income tax provisions in the Nigerian Tax Act, 2025 that exempted individuals earning N800,000 and below per annum from paying income tax. Under the new tax laws, the FG has even exempted members of the armed forces from paying income tax. Also, the fact that the tax laws exempted Nigerians earning below N800,000 per annum from income tax shows that the tax laws are not necessarily about raising revenues but reducing tax burden on Nigerians so that they can have more disposable income. If the new tax laws were to be anti-productivity, the company income tax rate would have been jerked up to above the 30% rate in the old Income Tax law.