Starting a business in
🇳🇬Nigeria
Checked November 9, 2026 · How we score
Corporate tax
30%
Top income tax
25%
Setup from
$1,500
all-in, first year
Time to form
14 days
visit usually needed
What is the corporate tax rate in Nigeria?
The headline corporate tax rate in Nigeria is 30% in 2026, and individuals pay up to 25%. 30% corporate income tax from 1 January 2026 under the Nigeria Tax Act 2025, plus a 4% development levy on assessable profits that replaces several older levies. Small companies (turnover up to NGN 100 million and fixed assets under NGN 250 million, excluding professional services) pay 0%. Capital gains of companies are now taxed at the same 30% rate.
| Corporate income tax | 30% 30% corporate income tax from 1 January 2026 under the Nigeria Tax Act 2025, plus a 4% development levy on assessable profits that replaces several older levies. Small companies (turnover up to NGN 100 million and fixed assets under NGN 250 million, excluding professional services) pay 0%. Capital gains of companies are now taxed at the same 30% rate. |
|---|---|
| Personal income tax (top) | 25% New progressive scale from 2026: the first NGN 800,000 is tax-free, then rates rise through 15%, 18%, 21% and 23% to 25% on income above NGN 50 million. Rent relief replaces older allowances. |
| Tax system | Worldwide income |
| Capital gains tax | 25%From 2026 individual gains are taxed at the personal income tax scale (top 25%) instead of a flat 10%; some share disposals below set thresholds are exempt. |
| Dividend withholding (non-residents) | 10% |
| VAT / GST | 7.5% |
| Social security | Employers pay 10% pension, 1% NSITF and 1% ITF on payroll; employees pay 8% pension. VAT is 7.5% and many basic goods and services are exempt. |
Forming a company in Nigeria
| Usual entity | Limited by shares (Ltd) |
|---|---|
| Minimum capital | $65k |
| Setup cost (all-in) | $1,500–$5,000 |
| Annual running cost | $2,000–$6,000 |
| Time to incorporate | 14 days |
| Form remotely as a foreigner | No |
| Local director required | Yes |
| Local address required | Yes |
| Owners on public register | Yes |
| Statutory audit for small companies | Yes |
| Business banking for non-residents | Hard |
Residency and visas
Foreign investors need a Business Permit and Subject-to-Regularisation visa (STR), obtained through the Nigerian Immigration Service. Foreign-owned companies must register with the Nigerian Investment Promotion Commission (NIPC) and meet the minimum capital rule.
| Digital nomad visa | No |
|---|---|
| Golden visa | No |
| Ease of residency for founders | 4/5 (1 = easiest) |
Taxes for individuals living in Nigeria
Tax residents are taxed on worldwide income, with credit for foreign tax under treaties. Foreign-source income received into Nigeria is taxable.
| Foreign income of residents | Taxed |
|---|---|
| Income tax structure | Progressive rates |
| Inheritance / estate tax | 0%Nigeria has no federal inheritance or estate tax; some states charge stamp duty on transfers of property. |
| Wealth tax | No |
| Annual property tax on your home | Yes |
| Exit tax when you leave | No |
| When you become tax resident | Resident if you have a permanent home in Nigeria, stay 183 days or more in a 12-month period, or have your principal place of employment there. |
Special tax regimes
Small company exemption
Companies with turnover up to NGN 100 million pay 0% corporate income tax and no capital gains or development levy.
Economic Development Incentive
Replaces pioneer status with a 5% annual tax credit for five years on qualifying capital expenditure in priority sectors.
Nigeria Startup Act labels
Labelled tech startups get tax and regulatory incentives and a path to simplified immigration for founders.
Pros and cons
Why founders pick Nigeria
- Africa's largest market and a leading startup ecosystem
- 0% tax for small local companies
- Reform of the tax code from 2026 simplifies levies
- Strong incentives for priority sectors
Watch out for
- 30% corporate tax plus 4% development levy
- NGN 100 million minimum capital for foreign-owned companies
- Currency volatility and difficulty repatriating foreign currency
- Resident director and local compliance burden
- Complex multi-layer taxation
Best for: Founders targeting Nigeria's 220 million consumers · Fintech and mobile businesses · Large investors able to meet the share-capital minimum
Nigeria: common questions
Is Nigeria a tax haven?
No. Nigeria is a normal-tax country: companies pay 30% corporate tax and the top personal income tax rate is 25%.
What is the corporate tax rate in Nigeria?
The corporate tax rate in Nigeria is 30% for companies from 1 January 2026, plus a 4% development levy on assessable profits. Small companies with turnover up to NGN 100 million and fixed assets under NGN 250 million pay 0%.
How much does it cost to register a company in Nigeria?
Expect USD 1,500–5,000 in the first year including CAC fees, a lawyer and NIPC registration. Foreign-owned companies must also meet the NGN 100 million minimum share capital requirement, which is the main cost barrier. Registration takes about 2–3 weeks.
What changed with the Nigeria Tax Act 2025?
From 1 January 2026 the Nigeria Tax Act consolidated company and personal income tax, capital gains and VAT. It kept the 30% corporate rate, added a 4% development levy, taxed gains at ordinary rates, raised the small-company threshold to NGN 100 million and introduced a 0% band on the first NGN 800,000 of personal income.
What is the income tax rate in Nigeria?
The top personal income tax rate is 25% on annual income above NGN 50 million, with the first NGN 800,000 tax-free. Individuals also pay 10% withholding tax on dividends.
Can a foreigner own 100% of a Nigerian company?
Yes, in most sectors. The company must register with CAC and NIPC, have at least one Nigerian-resident director and meet the minimum capital rule for foreign participation. Some sectors such as oil and gas have local content rules.
Sources
- Federal Inland Revenue Service (FIRS)
- Corporate Affairs Commission (CAC)
- PwC Worldwide Tax Summaries – Nigeria
Similar countries
Not tax or legal advice. Rates and rules change; we check official sources and update every page, but verify with a licensed adviser in the country before acting. Spotted something out of date? Use the correction form below.