How corporate tax works in Nigeria
Nigeria taxes resident companies on worldwide income at 30% from 2026, with the President empowered to cut to 25% on economic advice — not yet ordered. Non-residents pay on Nigerian-linked profits.
A 4% development levy on assessable profits replaces education, technology, science and police levies for all but small and non-resident firms. Genuine small companies pay zero corporate tax and zero gains tax.
The old 20% medium band is abolished: the system is binary zero or 30%. Very large turnovers face a 15% minimum effective-rate top-up under global minimum logic.
Tax rates at a glance
- Standard rate
- 30%New law
- Development levy
- 4%
- Small rate
- 0%
- Small turnover line
- NGN 50M
- Minimum top-up
- 15%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
FoundersHolding companiesRegional operatorsInvestorsCross-border groups
Watch out for
- Small-company zero has asset and activity tests besides turnover. Fixed assets above NGN 250 million or professional-services status forfeits the relief.
- The turnover line is disputed in summaries. The Act points to NGN 50 million while some guides cite 100M — confirm with live NRS guidance before relying.
- Old 20% medium-rate advice is repealed. Any structure priced at 20% needs rebuilding at zero or 30%.
- Excess-dividend and franked-investment rules survive in modified form. Distributions from untaxed profits can still trigger company-level charges.
Frequently asked questions
Does Nigeria have corporate tax?
Yes, 30% from 2026 plus a 4% development levy, with genuine small companies at zero.
What is the small-company threshold in Nigeria?
Turnover up to NGN 50 million with fixed assets to NGN 250 million and non-professional status, pending NRS clarification against summaries citing 100M.
What levies sit on top of corporate tax?
The 4% development levy for most firms, plus tiered super tax on very large incomes and a 15% minimum top-up for the largest groups.