How inheritance tax works in Nigeria
Nigeria levies no federal inheritance, estate or gift tax. Assets inherited before distribution are expressly not taxed, and lifetime gifts face no federal gift charge in 2026.
Income the estate earns during administration is taxable in executor or beneficiary hands. A later sale triggers folded-in gains tax at personal bands or 30% for companies.
State-level probate, title-perfection and consent fees still apply. Land and building transfers also escaped VAT, but stamp and registration costs remain.
Tax rates at a glance
- Estate duty
- 0%None federal
- Inheritance tax
- 0%
- Gift tax
- 0%
- Later company sale
- 30%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
FamiliesInvestorsHigh earnersExpatsFamily offices
Watch out for
- Zero federal duty does not mean zero succession cost. Probate, consent, perfection and legal fees in property states run high.
- Estate income is taxable yearly during administration. Rental-heavy estates that linger generate income-tax bills before distribution.
- Heirs inherit gains history for later sales. A tax-free inheritance becomes a banded gains bill measured from original cost.
- Customary and religious succession rules overlay the tax picture. Wills, letters of administration and family settlements need alignment.
Frequently asked questions
Does Nigeria have inheritance tax?
No federal duty. Inherited assets pass untaxed before distribution, with later sales facing folded-in gains tax.
Are gifts taxed in Nigeria?
No federal gift tax exists, though stamp duties and state transfer costs can apply to documented gifts.
What tax do heirs pay on inherited property?
Nothing on receipt federally. Later sales pay personal bands or 30% for companies, plus state perfection costs.