Which Taxes Apply to My Business Nigeria

Wondering which taxes apply to your business in Nigeria? Answer a few simple questions about your business activities to find out exactly what you owe and at what rates. This question-driven tool covers imports, exports, employees, and revenue brackets to give you a complete picture of your tax obligations. Whether you are a new business owner trying to understand the Nigerian tax landscape or an established company reviewing compliance, this tool maps your activities to specific tax obligations with applicable rates and filing requirements.

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Nigeria's Tax Framework for Businesses

Nigeria has a multi-layered tax system administered at the federal, state, and local government levels. The Federal Inland Revenue Service (FIRS) administers federal taxes including Corporate Income Tax, VAT, and Withholding Tax. State Internal Revenue Services administer Personal Income Tax and certain state taxes. Local governments collect specific levies and fees. The type and number of taxes your business pays depends on your business structure, activities, turnover, location, and whether you engage in international trade.

Import and Export Taxes

Businesses that import goods into Nigeria face customs duties, import VAT, and potentially excise duties on specific products. The Nigerian Customs Service administers these taxes at ports of entry. Import duties vary by product category under the Common External Tariff (CET) and can range from 5% to 35% depending on the product. Some raw materials and capital goods qualify for reduced rates or exemptions under various incentive schemes. Exporting businesses benefit from zero-rated VAT on exports and may qualify for export expansion grant schemes. Proper classification of goods using the Harmonized System (HS) codes is essential for accurate duty calculation.

Key Nigerian Business Taxes

  • CIT: 0% / 20% / 30% based on turnover size
  • VAT: 7.5% on taxable supplies
  • WHT: 5%–10% on specified payments
  • PAYE: 7%–24% progressive on employee salaries
  • Customs Duty: 5%–35% on imports
  • Stamp Duty: varies by instrument type
  • Capital Gains Tax: 10% on disposal of assets

Digital Economy Taxation

Nigeria has introduced provisions for taxing the digital economy. Companies providing digital services to Nigerian customers may be subject to Significant Economic Presence rules, requiring them to register and pay taxes in Nigeria even without a physical presence. This affects foreign technology companies, digital platforms, and e-commerce businesses. Nigerian digital businesses are also subject to standard CIT and VAT obligations. The 2025 tax reform further clarifies these provisions, making compliance more straightforward for digital businesses.