Nigeria Tax Data Card

Overview

Our updated Tax Data Card for 2023 (Nigeria Tax Summaries) is now available. The publication is a summary of the major tax and related regulations in Nigeria. 

Find information on these taxes in the data card:

Taxes on Income and Gains

• Capital Gains Tax (CGT): CGT is chargeable on capital gains accruing to any person (company or individual) making a disposal of assets.

• Companies Income Tax (CIT): The principal law is the Companies Income Tax Act (CITA) as amended by the Finance Acts (FAs) 2019, 2020, 2021 and 2023. CITA imposes income tax on profits accruing in, derived from, brought into or received in Nigeria. It is payable by companies that are registered in Nigeria and non- resident entities carrying on business or that have a Significant Economic Presence (SEP) in Nigeria.

• Information Technology Tax: IT Tax is payable by specified companies with turnover of ₦100 million and above. The tax when paid is tax deductible for company income tax purposes. The tax is governed by the National Information Technology Development Act (NITDA) 2007.

Indirect Taxes and Duties

• Custom and Excise Tax: Customs duties are taxes payable on goods imported into or exported from Nigeria. Excise duties are payable on the manufacture, sale or use of specified locally manufactured goods. The tax may also be levied on services, consumption and imported goods.

• Stamp Duties Act (SDA): Stamp duties are a tax on physical and electronic instruments/documents evidencing transactions between persons

• Value Added Tax (VAT): VAT is chargeable on the supply of all goods and services in Nigeria other than those listed in the First Schedule of the Act. The relevant law is the VAT Act LFN 2004 as amended.

Social Security Contributions

• Employee Compensation Scheme (ECS): The ECS is a social insurance scheme that provides guaranteed compensation to employees for any death, injury, disease or disability arising out of or in the course of employment. All employers of labor are obligated to contribute at least 1% of their monthly payroll to the Fund managed by the Nigeria Social Insurance Trust Fund (NSITF) 

• Industrial Training Fund (ITF) Contributions:The ITF was established by Decree 47 of 1971 and amended in 2011. The main objective of the Fund is to generate a pool of indigenous trained manpower to meet the needs of the Nigeria economy. 

• National Housing Fund (NHF): The aims and objectives of the NHF is to provide loans to Nigerians for developing, purchasing or renovating houses and encourage housing finance among low- and medium-income earners. The Fund provides long term loans to Mortgage Institutions for lending to contributors of the Fund.

For insights to the listed taxes and more download the publication below.