TAX NATIVES
GLOBAL
OUR JURISDICTIONS —
Nigeria
LAST UPDATED 21/07/2023
AT A GLANCE
Nigeria is the largest economy in Africa with a gross domestic product (GDP) estimated in 2018 at 397 billion US dollars. You’ll find Nigeria in West Africa with a hugely diverse geography and climate range. There are hundreds of languages spoken in the country with Yoruba, Igbo, Fula, Hausa and Edo being just a few of them. But its official language is English, and its currency is the Nigerian naira (NGN).
Although a developing country, Nigeria is internationally recognised as having incredible growth potential. It’s the largest producer of oil in Africa with numerous underexploited mineral resources. Nigeria’s natural resources have gained attention from major gas and oil organisations, oil field equipment and services businesses, transportation and logistics companies, and those in the petrochemicals and plastics sectors.
Engineering and construction are also prominent industries in Nigeria, thanks to domestic and foreign investment. And financial services are ever-expanding in the country with international investors and banks taking advantage of this growing market in West Africa.
Tax reforms are in progress in Nigeria to increase the current low tax compliance rate as the administration seeks to simplify systems and create a more business-friendly environment. The Presidential Enabling Business Environment Council (PEBEC) set up by the Government in 2016, has implemented several initiatives around tax registration, tax administration systems, issue resolution, and the processing of tax clearance certificates.
And there has been a slew of legislation with finance bills recently being passed to help address previous issues. The Government also introduced some measures to mitigate the impact of the Covid-19 pandemic with extensions to filing deadlines, reduced tax rates, suspension of audits, reduced filing requirements and the introduction of digital platforms for filing tax returns.
The new Finance Act (FA) came into force in January 2022 with significant changes to 13 laws, complementing the 2022 Budget of Economic Growth and Sustainability brought in by the Government.
Our local Tax Natives in Nigeria can tell you everything you need to know about the ins and outs of your tax obligations there. Whether you’re buying a single property, or doing complex business deals, we’ll get you the advice you need. Just say the word and we’ll link you with a local expert who can answer all your questions.
THE HEADLINES
- The corporate income tax rate in Nigeria is 30% for companies with a gross turnover of more than 100 million NGN, 20% for companies with a gross turnover of more than 25 million NGN, but less than 100 million NGN. And for companies with a gross turnover of 25 million NGN or less, the rate is 0%
- In Nigeria the headline personal income tax rate is 24%
- The standard VAT rate is 7.5%
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