Nigerian tax, governed in real time.

Relevant laws and official guidance

Nigeria's 2025 reform rests on four Acts. On 26 June 2025 the President signed four tax reform bills into law: the Nigeria Tax Act, the Nigeria Tax Administration Act, the Nigeria Revenue Service (Establishment) Act, and the Joint Revenue Board (Establishment) Act, with implementation commencing 1 January 2026. The Nigeria Revenue Service (Establishment) Act establishes the Service to take over the functions of the FIRS, empowering it to assess, collect and account for federal revenue. Because these laws are new, treat “FIRS-era” matters as records, assessments or obligations that arose before 2026 and are now handled within the NRS transition framework, subject to applicable transition guidance. Confirm current details on the official NRS portal.

Who the obligations may apply to

Depending on structure, sector, location and activities, this may apply to registered companies, branches of foreign companies, partnerships, self-employed persons and, for some duties (such as VAT and withholding tax), businesses acting as collection agents. Small companies may face lighter obligations. Based on current public sensitisation and available reform guidance, small-company treatment has been communicated around the ₦100 million annual turnover and ₦250 million fixed-assets threshold. Businesses should confirm the final applicable threshold and conditions under the current Nigeria Tax Act and NRS guidance before acting.

Basic compliance expectations

In general terms, businesses are expected to register for the taxes that apply to them, keep proper records, file accurate returns on time, remit amounts collected or due, and respond to queries. Headline rates have been kept relatively stable: under the new laws, VAT remains at 7.5% and Companies Income Tax for large companies remains at 30%. A 4% Development Levy on assessable profits now applies to most companies (except small businesses), replacing several previous levies. The reform also emphasises digital-first compliance and e-invoicing, so accuracy in payroll and vendor data matters more than before.

Common filings and submissions

These commonly include taxpayer/TIN registration, annual Companies Income Tax returns, monthly VAT and withholding tax returns and remittances, transfer pricing declarations and documentation where relevant, stamp duty on qualifying instruments, and applications such as a Tax Clearance Certificate. The mix that applies depends on the entity.

Documents or records usually required

Typically: certificate of incorporation and TIN, audited financial statements, management accounts and trial balances, VAT and WHT schedules and evidence of remittance, payroll records, transfer pricing documentation (where applicable), and prior correspondence or assessments. Good record-keeping is the backbone of a smooth filing and audit process.

Practical readiness checklist

• Confirm every tax type your business is registered for, and that your TIN details are current.
• Maintain a filing calendar for CIT, VAT and WHT deadlines.
• Reconcile VAT input/output and WHT credits monthly rather than at year-end.
• Keep transfer pricing documentation ready if you have related-party or cross-border transactions.
• Retain evidence of remittances in an audit-ready folder.
• Re-check how the 2025 reforms affect your specific obligations, as guidance is still bedding in.

Common mistakes to avoid

Treating CAC annual returns and tax filings as the same thing (they are not); assuming “no activity” means “no filing”; missing monthly VAT/WHT deadlines; poor documentation of related-party transactions; and relying on older guides that still describe the FIRS regime. When in doubt, confirm with the NRS or a qualified adviser.

How Outliers Professionals can support

We support clients with tax readiness, documentation, review and advisory guidance across federal tax obligations — helping teams organise records, understand what may apply, and prepare for filings or audits. We are not a regulator and cannot guarantee approvals, exemptions, tax savings or a particular assessment outcome.

Relevant laws and official guidance

State taxation of personal income is administered by each State IRS, with Pay As You Earn (PAYE) as the central mechanism for employees. The 2025 federal reforms reinforced the position of state authorities: the reform Acts provide that State Internal Revenue Services will be autonomous in the running of their affairs. Individual states also issue their own regulations and levies. Because these vary and are updated periodically, always confirm the current position with the specific State IRS.

Who the obligations may apply to

Depending on structure, sector, location and workforce, this may apply to employers of all sizes (as PAYE agents), businesses with premises in a state, and operators in sectors that attract state-specific charges such as hospitality or consumption taxes. A multi-state business should assume its obligations differ by state until it confirms otherwise.

Basic compliance expectations

In general terms, employers are expected to register with the relevant State IRS, deduct PAYE correctly from employee pay, remit monthly, file annual employer returns, and settle any applicable state levies (such as development levy or business premises charges). Rates, reliefs and consumption taxes differ by state, so payroll settings should reflect the correct state for each employee.

Common filings and submissions

These commonly include employer registration, monthly PAYE remittance and schedules, annual employer returns (and issuance of employee tax documents), business premises registration/renewal, development levy, and — in some states — consumption or hospitality tax filings.

Documents or records usually required

Typically: employer registration details, employee nominal rolls and payroll records, PAYE schedules and remittance evidence, tax deduction cards or equivalents, business premises records, and prior filings or correspondence with the State IRS.

Practical readiness checklist

• Confirm which State IRS you are registered with for each location.
• Ensure payroll applies the correct state rules per employee.
• Keep monthly PAYE remittance evidence organised by state.
• Track business premises and levy renewal dates.
• Reconcile annual employer returns to your payroll records.
• Before expanding to a new state, check that state's specific requirements.

Common mistakes to avoid

Assuming one state's rules apply everywhere; running all payroll through a single state when staff are spread across several; missing annual employer returns; overlooking business premises renewals; and treating state tax as covered by federal filings. Confirm specifics with the relevant State IRS.

How Outliers Professionals can support

We provide support with PAYE and state tax readiness, documentation, review and advisory guidance, and can help multi-state teams understand how obligations may differ across states. We are not a regulator and cannot guarantee clearances, acceptance or specific outcomes.