Africa · Tax guide
Nigeria
Nigeria rewrote its tax laws with the Nigeria Tax Act, in force since January 2026. Small companies pay no company income tax; others pay 30% plus a 4% development levy, and large companies must pay at least 15%. VAT is 7.5%. Federal taxes are administered by the Nigeria Revenue Service.
At a glance
- Company income tax
- 30%
- Small companies
- ₦50,000,000
- Minimum effective rate
- 15%
- VAT
- 7.5%
- Withholding on payments abroad
- 10% (5% on royalties paid to non-resident individuals)
Plus the 4% development levy
Turnover limit for exemption from company income tax
Large companies and multinational groups
Small companies are exempt from charging it
Dividends, interest and royalties
Company income tax and the development levy
Under the Nigeria Tax Act, small companies — turnover up to ₦50,000,000 and limited fixed assets, excluding professional services firms — pay no company income tax and no development levy. Other companies pay 30% plus a development levy of 4% of assessable profits, which replaces several older levies. Large companies and members of large multinational groups must reach an effective rate of at least 15%.
Returns are filed within six months of the year-end.
VAT and e-invoicing
VAT is charged at 7.5% and filed monthly by the 21st. Small companies within the ₦50,000,000 limit are exempt from charging VAT but must still register. The tax authority's e-invoicing system is being rolled out, starting with large taxpayers.
Withholding tax
Dividends, interest and royalties paid to non-residents carry 10% (5% on royalties paid to non-resident individuals) final withholding, unless a treaty lowers it. Services bought from abroad may also carry withholding and reverse-charge VAT.
Employers
Employers deduct PAYE for the state where each employee lives, and make pension, NSITF and ITF contributions.
Key dates
- By the 21st of each monthVAT return and payment
- MonthlyPAYE and withholding tax remittances
- Within six months of the year-endCompany income tax return
Figures and sources
6 figures- Company income tax rate30%Checked against the official source
- Development levy on assessable profits (replaces tertiary education tax and other levies)4%Checked against the official source
- Minimum effective tax rate for large companies and MNE group members15%Checked against the official source
- VAT rate7.5%Checked against the official source
- Turnover limit for small companies (0% tax; fixed assets up to ₦250 million; professional services excluded)₦50,000,000Checked against the official source
- Withholding on dividends, interest and royalties paid to non-residents10% (5% on royalties paid to non-resident individuals)Checked against the official source
Indicative only. This assessment is a high-level overview of tax obligations in Nigeria based on the information you provided and rules in force for 2026. It is not tax or legal advice. Consult a qualified tax adviser in Nigeria (a chartered tax practitioner) before making compliance decisions.