Explaining Personal Income Tax Deductions Under Nigeria’s Tax Act 2025
The Nigeria Tax Act 2025 (the “Act”), enacted on 26 June 2025 and scheduled to take effect on 1 January 2026, introduces comprehensive reforms to Nigeria’s fiscal framework. The Act repeals and consolidates several existing tax statutes, including the Personal Income Tax Act, into a unified legislative framework. This article examines the personal income tax regime established under the Act, with particular emphasis on taxable income, allowable deductions, exempt income and gains, applicable tax bands, and taxpayer reliefs.
