Nigeria's headline corporate income tax (CIT) rate is 30% large companies; 0% small companies.
The headline personal income tax (PIT) rate is 25 top marginal (graduated scale).
The standard VAT/GST (or equivalent consumption tax) rate is 7.5. Registration thresholds, zero-rated and exempt categories, and reduced rates vary by jurisdiction - see the source link below for the full detail on this jurisdiction.
Nigeria underwent a sweeping tax overhaul effective January 1, 2026 (the Nigeria Tax Act and related reform acts, signed into law June 26, 2025). Individual residency is now determined by domicile, habitual abode, family and economic ties, or presence in Nigeria for at least 183 days; Nigerian residents are now taxed on worldwide income (a shift from the prior source-based framework), while non-residents are taxed only on Nigeria-source income. The definition of a "Nigerian company" now expressly includes foreign-incorporated entities effectively managed or controlled from Nigeria, subjecting them to tax on global income. A Nigerian resident company is taxable on worldwide income whether or not repatriated (though dividends, interest, rents, and royalties earned abroad and brought into Nigeria through government-approved channels are exempt).
Nigeria introduced Controlled Foreign Company rules under the 2026 reform: undistributed profits of a foreign subsidiary controlled by a Nigerian parent may be deemed distributed and taxed in Nigeria at up to a 34% rate. Separately, a Nigerian parent must pay a "top-up" tax where a foreign subsidiary's effective tax rate is below 15% (aligning with global minimum tax principles), and large/multinational groups meeting defined thresholds face a 15% minimum effective tax rate. Detailed modalities for the deemed-distribution calculation were still pending release from tax authorities as of the most recent verification.
Interest expense deductibility on connected-party debt (local or foreign, including implicitly/explicitly guaranteed debt) is capped at 30% of EBITDA in a given tax year; excess interest carries forward up to five years. Nigerian banking and insurance subsidiaries of foreign companies are exempt from this rule. Existing anti-avoidance provisions separately allow the tax authority to disallow or reduce related-party interest not reflecting arm's-length pricing.
Nigeria has approximately 17 double tax treaties in force. Additional signed-but-not-ratified treaties exist with Kenya, Mauritius, and Poland (not yet ratified by Nigeria's National Assembly), and a broader ECOWAS regional tax treaty has been ratified by Nigeria but awaits ratification by the counterparty ECOWAS member states.