Tax and compliance in Nigeria: company tax, VAT and filings

Snapshot

A Nigerian company registers with the Corporate Affairs Commission, holds a tax identification, and deals with the Nigeria Revenue Service for federal taxes. The Nigeria Revenue Service replaced the Federal Inland Revenue Service under the 2025 tax reform, which took effect on 1 January 2026. Small companies are exempt from companies income tax, while value added tax applies at 7.5 percent. Figures here are as of 2 April 2026, and this is general information, not advice.

Federal tax authority: The Nigeria Revenue Service, which replaced the Federal Inland Revenue Service from 1 January 2026
Small company companies income tax: Exempt under the Nigeria Tax Act, with capital gains tax and the development levy also not applying. Verify the thresholds.
Value added tax: 7.5 percent, with input value added tax now claimable on services and capital assets
Record keeping: Generally at least 6 years, plus annual returns to the Corporate Affairs Commission

Fees and features as of 2 April 2026Last reviewed 2 April 2026

General information, not financial, legal, or tax advice. Verify current terms and eligibility with the provider before applying.

Business tax and compliance in Nigeria starts with registration at the Corporate Affairs Commission and a tax identification, then dealings with the Nigeria Revenue Service for federal taxes such as companies income tax and value added tax. The 2025 tax reform, in force from 1 January 2026, replaced the Federal Inland Revenue Service with the Nigeria Revenue Service, exempted small companies from companies income tax, and kept value added tax at 7.5 percent while widening input value added tax claims. This page is general information as of 2 April 2026, not advice, so confirm your obligations with the Nigeria Revenue Service or a qualified adviser.

How business tax and compliance work in Nigeria

A company is first registered with the Corporate Affairs Commission, as a business name or a limited company. A tax identification is now issued automatically when incorporation is approved, through the Corporate Affairs Commission integration with the Nigeria Revenue Service. From there the company meets federal tax duties through the Nigeria Revenue Service, which replaced the Federal Inland Revenue Service as the central federal tax authority under the 2025 tax reform that took effect on 1 January 2026. State tax authorities handle certain other taxes. As of 2 April 2026, confirm the current process with the Nigeria Revenue Service or an adviser.

Companies income tax and small company relief

Companies income tax applies to company profits, and tax is handled on a self assessment basis where the company computes its liability, files a companies income tax return, and pays at the time of filing its annual returns. Under the Nigeria Tax Act, in force from 1 January 2026, small companies are exempt from companies income tax, capital gains tax and the development levy. A small company is defined by thresholds, reported as annual turnover not exceeding 100 million naira and total fixed assets not exceeding 250 million naira. Larger companies pay companies income tax at the applicable rate. As of 2 April 2026, verify the current thresholds and rates with the Nigeria Revenue Service or an adviser.

Value added tax and other duties

Value added tax is charged at 7.5 percent. Under the 2025 reform, businesses can now claim input value added tax on services and on capital assets, a change from the previous position, and an electronic invoicing system is being adopted for value added tax. Employers also handle pay as you earn for staff and may have withholding tax duties, which are separate from companies income tax. As of 2 April 2026, confirm registration thresholds and filing dates with the Nigeria Revenue Service or an adviser.

Core compliance tasks

The recurring duties a Nigerian company is most likely to meet are listed below. Exact obligations depend on the company. Verify with the Nigeria Revenue Service or an adviser

Register with the Corporate Affairs Commission and hold a tax identification, then meet federal tax duties through the Nigeria Revenue Service.
Compute and file companies income tax on a self assessment basis, unless exempt as a small company, and file value added tax where it applies.
Keep books of account for at least 6 years and file annual returns with the Corporate Affairs Commission, a separate corporate filing from tax returns.

The international providers we compare do not confirm a business account for companies resident in Nigeria as of 2 April 2026. Companies in Nigeria usually bank with an established local bank such as Guaranty Trust Bank, Access Bank, Zenith Bank, First Bank of Nigeria, or United Bank for Africa, or with a licensed Nigerian fintech such as Moniepoint, Kuda, or OPay. Compare their published terms and see the related guides below.

Questions about tax and compliance in Nigeria

Who collects company tax in Nigeria?

The Nigeria Revenue Service is the central federal tax authority. It replaced the Federal Inland Revenue Service under the 2025 tax reform, which took effect on 1 January 2026. Companies register with the Corporate Affairs Commission first, then hold a tax identification used for federal taxes. As of 2 April 2026. Verify your position with the Nigeria Revenue Service or an adviser.

Do small companies pay companies income tax in Nigeria?

Under the Nigeria Tax Act, which took effect on 1 January 2026, small companies are exempt from companies income tax, capital gains tax and the development levy. A small company is defined by thresholds, reported as annual turnover not exceeding 100 million naira and total fixed assets not exceeding 250 million naira. Larger companies pay companies income tax. As of 2 April 2026. Verify the current thresholds with the Nigeria Revenue Service or an adviser.

What is the VAT rate in Nigeria?

Value added tax is charged at 7.5 percent. Under the 2025 reform, businesses can now claim input value added tax on services and on capital assets, and an electronic invoicing system is being adopted. As of 2 April 2026. Verify registration and filing duties with the Nigeria Revenue Service or an adviser.

How long must a company keep its records in Nigeria?

Companies are generally required to keep books of account for at least 6 years. Companies also file annual returns with the Corporate Affairs Commission, which is a separate corporate filing from tax returns. As of 2 April 2026. Verify your obligations with the relevant authority or an adviser.

Fees, features, and eligibility change and vary by region. This page was last reviewed on 2 April 2026. Confirm current terms with the provider before applying.