Home / Dashboards / Tax Intelligence Dashboard

Tax Intelligence Dashboard

Nigeria’s new tax laws, in plain language

Nigeria's four tax reform acts took effect on 1 January 2026. They consolidate dozens of older tax laws, set new reliefs for low earners and small businesses, and rename the federal tax authority.

Key rates at a glance

The headline rates from 1 January 2026

Under the Nigeria Tax Act 2025.

0%–25%Personal income taxFirst ₦800,000 a year tax-free

0% / 30%Company income taxSmall companies / all others

7.5%VATZero-rated: basic food, education materials, medical services and equipment

2%–10%Withholding taxDepends on the type of payment

Up to 30%Capital gains taxNow taxed at income tax rates: up to 25% for individuals, 30% for companies

4%Development levyOn assessable profits; small companies exempt

Tools

If you earn ₦X, you now pay ₦Y

Compare personal income tax under the old rules (2025) and the new rules (2026). A guide only, not tax advice.

Annual gross income (₦) Annual rent you pay (₦) I contribute 8% to a pension

Old rules (2025)—

New rules (2026)—

Old rules: consolidated relief allowance, 2011 bands and the 1% minimum tax. New rules: Nigeria Tax Act 2025 bands and rent relief. Ignores other reliefs and allowances. Check your position with the Nigeria Revenue Service or a tax adviser.

Tool

Small company checker

Small companies pay no company income tax and no development levy.

Does your business qualify as a small company?

Annual turnover (₦) Total fixed assets (₦)

We provide professional services (law, accounting, consulting and similar)

A quick guide, not tax advice. Confirm your position with the Nigeria Revenue Service or a tax professional.

Who pays what

Individuals, small businesses and large companies

	Individuals	Small companies	Other companies
Who qualifies	Employees, sole traders, freelancers	Turnover up to ₦100m and fixed assets up to ₦250m; professional services excluded	All companies that are not small
Income tax	0% on the first ₦800,000, then 15% to 25%	0%	30%
Development levy	None	Exempt	4% of assessable profits
Capital gains	Taxed at income tax rates	Taxed with company income	Taxed with company income (30%)
Main reliefs	Rent relief: 20% of rent, up to ₦500,000; pension and health insurance contributions	Full company income tax exemption	Capital allowances and incentives as provided in the Act

What changed

Before and after the 2025 tax reform acts

Item	Until 31 December 2025	From 1 January 2026
Personal income tax	7%, 11%, 15%, 19%, 21% and 24% bands after the consolidated relief allowance	0% up to ₦800,000; 15%, 18%, 21%, 23%, then 25% above ₦50m
Personal reliefs	Consolidated relief allowance: ₦200,000 or 1% of gross income (whichever is higher) plus 20% of gross	Allowance removed; rent relief of 20% of rent paid, capped at ₦500,000
Small companies	0% for turnover under ₦25m; 20% for turnover ₦25m–₦100m	0% for turnover up to ₦100m and fixed assets up to ₦250m
Large companies	30%	30%, plus a 15% minimum effective tax rate for in-scope large groups
Levies on profits	Tertiary education tax 3% plus other sector levies	One 4% development levy replacing several levies
Capital gains tax	Flat 10%	Taxed at income tax rates (up to 25% for individuals, 30% for companies)
VAT	7.5%	7.5%; basic food, education materials, medical services and equipment zero-rated; small companies need not file monthly VAT returns
Tax authority	Federal Inland Revenue Service (FIRS)	Nigeria Revenue Service (NRS)

The four Acts

What each law does

Read or download the official copies published by the Nigeria Revenue Service (NRS) and the State Internal Revenue Service (State IRS).

2025 No. 7

Nigeria Tax Act, 2025

Sets out what is taxed, who pays and how much: income, company, VAT, capital gains and other taxes in one law.

Download PDF (State IRS) NRS official page

2025 No. 5

Nigeria Tax Administration Act, 2025

Rules for registering, filing, paying and assessing taxes, including digital filing and penalties.

Download PDF (NRS) Download PDF (State IRS) NRS official page

2025 No. 4

Nigeria Revenue Service (Establishment) Act, 2025

Replaces the Federal Inland Revenue Service (FIRS) with the Nigeria Revenue Service (NRS).

Download PDF (NRS) NRS official page

2025 No. 6

Joint Revenue Board of Nigeria (Establishment) Act, 2025

Coordinates federal, state and local tax authorities to reduce multiple taxation and settle disputes.

Download PDF (NRS) NRS official page

State taxes: each State Internal Revenue Service (State IRS) publishes its own state revenue law, which sets out how personal income tax and other state taxes are assessed and collected; see, for example, the State IRS revenue administration law (Lagos, PDF) and the State IRS tax legislation page. Federal laws are on the NRS tax laws page.

Key deadlines

Filing calendar

Under the Nigeria Tax Administration Act 2025.

Every month

10th PAYE: remit tax deducted from salaries paid the previous month
14th VAT withheld at source: remit to the NRS
21st VAT return for the previous month, including nil returns (small companies are excused from monthly VAT returns)
21st Withholding tax: remit tax deducted the previous month
16th NSITF employee compensation contribution for the previous month
Within 7 working days of payday Pension contributions to each employee’s pension fund administrator
Within 1 month of payday National Housing Fund (NHF) deductions to the Federal Mortgage Bank

Every year

31 January Employers' annual PAYE return
1 April Industrial Training Fund (ITF) contribution for the previous year
31 March Personal income tax returns (self-employed: within 6 months of their financial year-end)
30 June Annual return on tax incentives claimed the previous year
6 months after year-end Company income tax and development levy returns (first return: within 18 months of incorporation or 6 months after the first accounting period, whichever is earlier)

Penalties for late or missed filing

Failure	Penalty
Not registering for tax	₦50,000 for the first month, then ₦25,000 for each further month
Late personal income tax return (individual)	₦100,000 for the first month, then ₦50,000 for each further month
Late PAYE, withholding tax or VAT remittance	10% of the tax due, plus interest at the CBN rate
Late development levy return	₦100,000 for the first month, then ₦50,000 for each further month
Late annual incentives return	Companies: ₦1 million or 1% of the incentive claimed, whichever is higher. Individuals: ₦100,000
Not using the e-invoicing (fiscalisation) system for VAT	₦200,000, plus 100% of the tax due and interest

Under the Nigeria Tax Administration Act 2025, as summarised by tax practitioners. Check the Act or the Nigeria Revenue Service for your case.

Withholding tax

Withholding tax rates

Deducted by the payer and remitted by the 21st of the following month: to the NRS when the recipient is a company, to the State IRS when the recipient is an individual. Under the Deduction of Tax at Source (Withholding) Regulations 2024, in force since 1 January 2025.

Payment	To companies (resident / non-resident)	To individuals (resident / non-resident)
Dividends and interest	10% / 10%	10% / 10%
Royalties	10% / 10%	5% / 5%
Rent, hire or lease	10% / 10%	10% / 10%
Professional, consultancy, technical, management fees, commission and brokerage	5% / 10%	5% / 10%
Directors’ fees	–	15% / 20%
Construction of roads, bridges, buildings and power plants	2% / 5%	2% / 5%
Other construction and related activities	5% / 10%	5% / 10%
Supply of goods or materials (not by the maker)	2% / –	2% / –
Other services, co-location and telecom tower services	2% / 5%	2% / 5%
Compensation for loss of employment	–	10% / 10%
Lottery, gaming and reality-show winnings	–	5% / 15%
Entertainers and sportspeople (non-resident)	15%	15%

Small companies with turnover of ₦25 million or less do not have to deduct withholding tax.
No deduction on: over-the-counter purchases, goods made by the supplier, telephone and internet data charges, airline tickets, insurance premiums, bank charges taken by direct debit, and petroleum product supplies.
Late or missed remittance: 10% of the tax plus interest at the CBN rate.

Payroll levies

Pension, NHF, ITF, NSITF and health insurance

Not called taxes, but compulsory charges on pay that every employer has to budget for and remit on time.

Levy	Rate	Who pays	Pay to	Due	If late
Pension (Pension Reform Act 2014)	At least 10% employer + 8% employee of monthly pay (basic, housing and transport)	Employers with 3 or more staff; the employer may pay the full 18%	Each employee’s pension fund administrator (PFA)	Within 7 working days of paying salaries	2% of the unpaid amount for each month
National Housing Fund (NHF Act)	2.5% of basic monthly salary	Employees earning at least the minimum wage; the employer deducts it	Federal Mortgage Bank of Nigeria	Within one month of deduction	₦50,000 fine for employers that fail to deduct or remit
Industrial Training Fund (ITF Amendment Act 2011)	1% of total annual payroll	Employers with 5 or more staff, or fewer than 5 with turnover of ₦50 million or more	ITF	1 April each year	5% of the unpaid amount for each month; up to 50% can be refunded for approved staff training
Employees’ compensation (NSITF, Employees’ Compensation Act 2010)	1% of total monthly payroll	All employers	Nigeria Social Insurance Trust Fund	By the 16th of the following month	10% of the unremitted amount
Health insurance (NHIA Act 2022)	Formal sector: 10% employer + 5% employee of basic salary	Employers covered by the mandatory scheme	An accredited health maintenance organisation (HMO)	As set by the scheme	As set by the NHIA
Development levy (Nigeria Tax Act 2025)	4% of assessable profits	Companies that are not small companies	NRS	With the company income tax return	As for company income tax

The 4% development levy replaces the tertiary education tax and the NITDA, NASENI and Police Trust Fund levies from 2026. Thresholds and rates for health insurance vary by state scheme. Check with each agency before you pay.

Transfer pricing

Dealings between related companies

Companies that trade with related parties, such as a parent, subsidiary or sister company, must price those deals as if they were with an unrelated party, and file the forms below with the NRS.

Filing	What it is	Due	If late or wrong
Transfer pricing declaration	Lists the company’s related parties. Filed once, then updated when they change	With the first company income tax return: 6 months after year-end, or 18 months after incorporation if earlier	₦10 million, plus ₦10,000 a day
Transfer pricing disclosure form	Related-party transactions in the year, their value and the pricing method	Every year with the company income tax return (6 months after year-end)	The higher of ₦10 million or 1% of the undisclosed value, plus ₦10,000 a day
Transfer pricing documentation	The analysis showing prices are at arm’s length	Prepared by the return date; submitted within 21 days of an NRS request. Below ₦300 million of related-party deals a year it need not be kept in advance, but must be produced within 90 days if asked	The higher of ₦10 million or 1% of all related-party transactions, plus ₦10,000 a day
Country-by-country report	Groups with consolidated revenue of ₦160 billion or more	12 months after the group’s year-end; a notification is due by the last day of the year	Late report: ₦10 million, plus ₦1 million a month. Missed notification: ₦5 million, plus ₦10,000 a day

Under the Income Tax (Transfer Pricing) Regulations 2018 and the Country-by-Country Reporting Regulations 2018, which the Nigeria Tax Act 2025 carries forward. Filed on the NRS transfer pricing portal.

Revenue picture

How much tax the federal government collects

Total collections by the FIRS, now the Nigeria Revenue Service.

Federal tax collections

Source: FIRS/NRS annual figures as reported by ThisDay, Leadership, Nairametrics, The Gazette and The Guardian · 2016–2025 Data table Download CSV Excel

10-year history

How the main rates have changed since 2016

VAT rose in 2020, small companies became exempt from 2020, the education tax rose before being replaced by the development levy, and capital gains moved to income tax rates in 2026.

Headline tax rates by year

Source: PITA, CITA, VAT Act and Finance Acts 2019–2023; Nigeria Tax Act 2025 · 2016–2026 Data table Download CSV Excel

Checklist

Tax filing checklist for SMEs and freelancers

Get a tax ID (TIN) and register with the Nigeria Revenue Service or your state revenue service
Check whether your business qualifies as a small company (turnover up to ₦100m, fixed assets up to ₦250m)
Keep records of all income, expenses, invoices and receipts
Register for VAT if you make taxable supplies, and file a return by the 21st of each month
Deduct and remit PAYE by the 10th if you have staff
Freelancers: file your personal income tax return by 31 March and keep rent receipts for rent relief

Tax Intelligence Dashboard

Charts and historical trends

Choose a time range, hover for values, and download the data behind each chart.

Federal tax collections₦28.30tn2025 · FIRS/NRS annual figures as reported by ThisDay

Federal tax collections (% of GDP)6.6%2025 · Eco Data Technologies calculation

VAT rate7.5%2026 · PITA

Company income tax (large companies)30%2026 · PITA

Federal tax collections (FIRS/NRS)

Source: FIRS/NRS annual figures as reported by ThisDay, Leadership, Nairametrics, The Gazette and The Guardian · 2016–2025 Data table Download CSV Excel

VAT and company income tax collections

Source: FIRS/NRS annual figures as reported by ThisDay, Leadership, Nairametrics, The Gazette and The Guardian · 2016–2025 Data table Download CSV Excel

Key tax rates over time

Source: PITA, CITA, VAT Act and Finance Acts 2019–2023; Nigeria Tax Act 2025 · 2016–2026 Data table Download CSV Excel

Federal tax collections as a share of GDP

Year	% of nominal GDP
2019	2.56%
2020	2.32%
2021	2.63%
2022	3.71%
2023	3.94%
2024	5.79%
2025	6.56%

Calculated by Eco Data Technologies from FIRS/NRS collections and NBS nominal GDP for the same year. Excludes state and local taxes and customs.

Coming next: Customs revenue and state PAYE collections are being added to the Data Hub.

Comparisons

How Nigeria compares

Latest available year for each country, from the same international source. Nigeria is highlighted.

Tax revenue (central government)% of GDP · World Bank WDI

South Africa25.9% 2024
Morocco22.7% 2024
Senegal19.5% 2023
Kenya14.1% 2023
Côte d'Ivoire13.0% 2023
Rwanda12.7% 2024
Egypt12.5% 2015
Ghana12.4% 2023
Ethiopia3.4% 2024

Definitions and sources

What each indicator means

Definitions, units, how often each figure is published and who publishes it. Each chart shows its reference period.

Indicator	Definition	Unit	Frequency	Source
Company income tax (CIT)	Tax on the profits of companies.	% of assessable profit	Annual returns	Nigeria Tax Act 2025; NRS
Value added tax (VAT)	Tax on the supply of goods and services, collected at each stage and borne by the final consumer.	% of value	Monthly returns	Nigeria Tax Act 2025; NRS
Personal income tax (PIT)	Tax on the income of individuals, collected mainly by state revenue services through PAYE.	% of taxable income, by band	Monthly (PAYE)	Nigeria Tax Act 2025; state IRS
Customs revenue	Import and excise duties and related charges collected at the border.	₦ trillion	Monthly	Nigeria Customs Service
Tax-to-GDP ratio	Tax revenue as a share of nominal GDP: a measure of how much of the economy is collected in tax.	% of GDP	Annual	Eco Data Technologies calculation; World Bank for comparisons

Methodology

How these figures are compiled

Collections are those reported by the Federal Inland Revenue Service, now the Nigeria Revenue Service. The tax-to-GDP figure here divides federal collections by nominal GDP (rebased series) for the same year, so it excludes state and local taxes and customs and is lower than a general government ratio. Cross-country comparisons use the World Bank central government series.

Read our full methodology → · Data sources →

Downloads