Tax system in Nigeria
Nigeria taxes residents on worldwide income under the Nigeria Tax Act in force since January 2026. FIRS is now the Nigeria Revenue Service, and old CITA, PITA and CGT laws are repealed.
Personal bands run 0% to NGN 800,000 then 15% to 25% at the top, with 20% rent relief capped at NGN 500,000. Companies pay 30% plus a 4% development levy, while small firms pay zero.
Capital gains no longer have a standalone rate: companies pay 30% and individuals pay personal bands. Dividends face 10% withholding, estates face no duty, and VAT holds at 7.5%.
Tax rates at a glance
- Income tax
- 0% - 25%New 2026 law
- Wealth tax
- 0%
- Inheritance tax
- 0%
- Capital gains tax
- 0% - 30%
- Corporate tax
- 30%
- Dividend tax
- 10%
- VAT
- 7.50%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
EmployeesExpatsInvestorsFoundersCross-border groups
Watch out for
- The 2026 law is new and guidance is still landing. Old PITA and CITA guides describe a repealed system — check any advice for Nigeria Tax Act vintage.
- Residence is broader than 183 days. Domicile, homes, family and economic ties can each trigger worldwide taxation alone.
- Small-company zero needs turnover and asset tests plus non-professional status. Mid-size firms should confirm the NGN 50 million line against NRS clarification.
- Grey-list exit helps banking but changed no rates. Removed from FATF monitoring in October 2025, Nigeria taxes under the new Act regardless.
Frequently asked questions
Is Nigeria a high-tax country?
Moderately. Personal tax tops at 25% with a generous zero band, companies pay 30% plus 4% levy, and VAT is just 7.5% — though levies and withholding add up.
Does Nigeria have a wealth tax?
No. Nigeria levies no net wealth tax, and higher earners carry the burden through steeper personal bands instead.
Which taxes matter most in Nigeria?
The main ones are new-bands personal tax with PAYE, 30% corporate tax plus development levy, folded-in capital gains, 10% dividend withholding and 7.5% VAT.