🇳🇬 Corporate Tax in Nigeria

Headline rate: 30% (large); 20% (medium); 0% (small — turnover < NGN 25M)

Private Company Limited by Shares (Ltd)

Nigeria applies tiered corporate income tax: 30% for large companies (turnover > NGN 100 million), 20% for medium companies (NGN 25–100 million turnover), and 0% for small companies (turnover < NGN 25 million). An additional tertiary education tax of 2.5% of assessable profits applies. VAT is 7.5% on most goods and services. Withholding tax of 10% on dividends, interest, royalties, and management fees paid to non-residents. Companies in pioneer industries may qualify for a 3–5 year tax holiday. Free zone entities in approved zones pay 0% corporate tax on export-oriented activities.

Company Limited by Guarantee (GTE)

GTEs operating for charitable, educational, or religious purposes may apply for tax exemption under Section 23 of the Companies Income Tax Act. If approved, the entity pays no corporate income tax on income applied to its stated objects. GTEs that engage in commercial activities beyond their stated objects may lose the exemption and become subject to standard corporate tax rates.

Key Facts

Double tax treaties: 16
Memberships: WTO, UN, African Union, ECOWAS, AfCFTA, OPEC
Legal system: Common law (English-influenced) with customary and Sharia elements
Fiscal year: January – December (or company-chosen)

This content is educational and does not constitute legal or tax advice. Always consult a qualified professional for your specific situation. Data last verified March 2026.