Nigeria (NG)
Nigeria is Africa's most populous nation and its largest economy — a vibrant, dynamic, and entrepreneurial country of over 220 million people spanning 36 states and 250+ ethnic groups.
2026 Annual Changes — Nigeria
Updated thresholds, benefits, and regulatory changes effective this year.
Nigeria 2026 planning is shaped by the Nigeria Tax Act 2025 (NTA), which took effect 1 January 2026: new PAYE bands, a PAYE exemption for the lowest earners, Rent Relief replacing the Consolidated Relief Allowance, expanded VAT zero-rating, and mandatory e-invoicing for VAT-registered businesses. The FIRS is transitioning to the Nigeria Revenue Service (NRS) framework. The NGN 70,000 national minimum wage and 18% total pension contribution remain in effect.
Key Changes for 2026
| Category | 2026 Value | Previous | Effective Date |
|---|---|---|---|
| Income Tax (PAYE) — New Bands from NTA 2025 Nigeria Tax Act 2025 replaced the old PITA personal income-tax bands with new wider brackets effective 1 January 2026. | 0% on first NGN 800,000; 15% on next NGN 2,200,000 (to NGN 3,000,000); 18% on next NGN 9,000,000 (to NGN 12,000,000); 21% on next NGN 13,000,000 (to NGN 25,000,000); 23% on next NGN 25,000,000 (to NGN 50,000,000); 25% on income above NGN 50,000,000 | Old PITA bands: 7% to 24% graduated rates | 2026-01-01 |
| PAYE Exemption — Minimum Wage Earners Under NTA 2025, employees whose gross income does not exceed the national minimum wage are fully exempt from PAYE withholding. | Employees earning NGN 70,000/month or less: 0% PAYE; no withholding obligation for employers | — | 2026-01-01 |
| Rent Relief — Replacing Consolidated Relief Allowance NTA 2025 replaced the Consolidated Relief Allowance (CRA) with a new Rent Relief deduction, allowing employees to deduct a percentage of actual rent paid from taxable employment income. | Rent Relief: up to 20% of actual annual rent paid, capped at NGN 500,000/year, deductible from taxable employment income | CRA: higher of NGN 200,000 or 1% of gross income, plus 20% of gross income | 2026-01-01 |
| VAT — Rate and Zero-Rating Expansion Standard VAT rate retained at 7.5% under NTA 2025. Zero-rating expanded to cover essential goods and services; mandatory e-invoicing introduced for VAT-registered businesses. | 7.5% standard VAT rate (retained; earlier proposals to raise to 12.5% were dropped). New zero-rated categories include basic food items, pharmaceutical products and educational materials. E-invoicing mandatory for VAT-registered businesses from 2026. | — | 2026-01-01 |
| Tax Authority — NRS Replacing FIRS The Nigeria Revenue Service (NRS) framework replaces and renames the Federal Inland Revenue Service (FIRS) under the 2025 tax reform acts. PAYE is still state-administered through State Internal Revenue Services. | Federal taxes (CIT, WHT, VAT) administered by NRS (transitioning from FIRS branding). PAYE and personal income tax remain state-administered by relevant State Internal Revenue Service (SIRS). Use nrsportal.ng for federal filings (during transition, firs.gov.ng remains active). | — | 2026-01-01 |
| National Minimum Wage National Minimum Wage Act 2024 set the federal minimum wage at NGN 70,000/month; this remains the floor for 2026. Some states pay higher rates. | NGN 70,000/month federal minimum wage floor. Lagos State: NGN 85,000/month. Some trade unions have demanded further increases; no federal revision confirmed for 2026. | NGN 30,000/month (pre-2024) | 2024-07-29 (ongoing through 2026) |
| Pension — Contributory Scheme Pension Reform Act contributions unchanged for 2026. Expats and foreign workers should clarify with HR whether expatriate-payroll treatment and PFA registration apply. | 10% minimum employer contribution + 8% minimum employee contribution = 18% of pensionable pay total. Remitted to employee's Retirement Savings Account (RSA) held at a licensed Pension Fund Administrator (PFA). | — | 2026 (unchanged) |
| Immigration — e-CERPAC and e-Visa Nigeria Immigration Service e-Visa system and e-CERPAC (electronic Combined Expatriate Residence Permit and Aliens Card) residence-permit digitalisation continue through 2026. | Short-visit e-Visa via evisa.immigration.gov.ng. Employment residence permit via e-CERPAC portal (cerpac.immigration.gov.ng). Only official NIS portals should be used — fake sites are common. Expatriate quota approval required before R2A employment visa processing. | — | 2026 (ongoing) |
| Health Insurance — NHIA Mandatory Framework The National Health Insurance Authority (NHIA) mandatory health-insurance framework for employees and their employers continues under the Health Insurance Authority Act 2022. | All employers must provide health insurance coverage for employees. Most formal employers use a licensed Health Maintenance Organisation (HMO). Employee + employer contribution rates depend on the HMO plan and scheme type; no single federal premium rate applies. | — | 2026 (ongoing) |
| WHT — Withholding Tax on Dividends and Rentals NTA 2025 adjustments to withholding tax rates affect dividends, interest, rent and service payments; verify current rates before invoicing. | 10% WHT on dividends; 10% WHT on interest; 10% WHT on rent for individuals (5% for companies); 5% WHT on most services contracts. WHT is a tax credit, deductible against annual liability. | — | 2026-01-01 |
January Checklist
Actions to take each January when new rates take effect.
- 1
Update payroll to use new NTA 2025 PAYE bands effective 1 January 2026; check payslip on first January salary.
- 2
Confirm employees earning NGN 70,000/month or less are flagged as PAYE-exempt in payroll.
- 3
Review Rent Relief eligibility for each employee — collect lease/rent evidence to support the deduction.
- 4
Register or update VAT e-invoicing system before processing first January 2026 VAT invoices.
- 5
Confirm visa and CERPAC/e-CERPAC expiry dates; calendar renewal reminders at 90 and 60 days ahead.
- 6
Update bank KYC documents (passport, visa/CERPAC, tax identification) to avoid large-transfer delays.
- 7
Check HMO card and guarantee-of-payment process with preferred private hospitals before illness.
Where to Track Annual Changes
-
Nigeria Revenue Service (NRS/FIRS) — nrsportal.ng and firs.gov.ng — CIT, WHT, VAT and NTA guidance
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Nigeria Immigration Service — immigration.gov.ng — e-Visa and e-CERPAC portals
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State Internal Revenue Services — e.g., lirs.gov.ng (Lagos), fct-irs.gov.ng (FCT) — PAYE registration and remittance
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National Pension Commission (PenCom) — pencom.gov.ng — pension compliance and RSA rules
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National Health Insurance Authority (NHIA) — nhia.gov.ng — mandatory health insurance framework
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PwC Nigeria Tax Summaries — taxsummaries.pwc.com/nigeria — NTA 2025 guidance
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KPMG / Deloitte Nigeria tax alerts — for NTA implementing regulations as they are issued
NTA 2025 implementing regulations and practice notes are being issued through 2026 — monitor NRS/FIRS notices for clarification on specific provisions. PAYE is state-administered; registering with the correct State Internal Revenue Service (based on employee location) is mandatory before first payroll. WHT rates above are standard; treaty relief may apply for certain nationalities — verify with a Nigerian tax adviser.
Annual Changes
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