Tax
The Nigeria Tax Act 2025 consolidated the federal tax statutes and replaced CITA and PITA
Nigeria's 2025 tax reform package replaced the Companies Income Tax Act, Personal Income Tax Act, VAT Act and others with the Nigeria Tax Act, and created the Nigeria Revenue Service in place of FIRS. Company tax is 30% for large companies with a 0% rate for small companies, and VAT is 7.5%.
Key rules
- Jurisdiction — Nigeria Revenue Service for federal taxes; state internal revenue services for personal income tax of residents; Tax Appeal Tribunal then the Federal High Court.
- Deadline — Company returns are due within six months of the financial year end
- Deadline — VAT returns are filed monthly by the 21st of the following month
- Deadline — PAYE remittances are due by the 10th of the following month
Governing law
- Nigeria Tax Act 2025 — consolidated CITA, PITA, VAT, CGT and stamp duties
- Nigeria Tax Administration Act 2025
- Nigeria Revenue Service (Establishment) Act 2025 — replaced the Federal Inland Revenue Service
- Joint Revenue Board (Establishment) Act 2025
In practice
The four 2025 Acts are the largest restructuring of Nigerian tax law in decades and any pre-2025 description of CITA or PITA as the operative statute is now out of date. Company income tax is 30% for large companies, with small companies below the turnover threshold taxed at 0%, and the development levy consolidates the former education tax, IT levy and NASENI levy. VAT remains 7.5% with an expanded list of zero-rated basic items, and input VAT recovery was broadened, which was one of the principal complaints under the old VAT Act. Personal income tax is progressive with a rent relief replacing the old consolidated relief allowance. The federal/state division still matters: personal income tax of residents is administered by state internal revenue services, and the constitutional allocation of VAT has been litigated between Rivers State, Lagos State and the federation. Objections go to the Tax Appeal Tribunal and then the Federal High Court.