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.

Capital: Abuja

Region: Africa

Language: English

Currency: NGN (₦)

Cost of living: Very affordable (index 22)

Emergency: 112

Tax & Payslip Guide

Understanding your taxes in Nigeria — tax year Calendar year (January 1 – December 31).

📅

Tax Year

Calendar year (January 1 – December 31)

⏰

Filing Deadline

31 March for many individual/state PIT filings; PAYE remittances are monthly and state-administered.

🧾

VAT (Standard)

7.5%

📊 Income Tax Brackets

Income from	Income to	Rate	Notes
0	800,000	0%	Tax-free under the Nigeria Tax Act 2025, effective 1 January 2026. Income of NGN 800,000/year or less is fully exempt from personal income tax.
800,001	3,000,000	15%	Next NGN 2,200,000 above the exempt threshold.
3,000,001	12,000,000	18%	Next NGN 9,000,000.
12,000,001	24,000,000	21%	Next NGN 12,000,000.
24,000,001	50,000,000	23%	Next NGN 26,000,000.
50,000,001	∞	25%	Income above NGN 50,000,000. The top PIT rate is 25% under the NTA 2025 reform.

🏛️ Social Contributions

Contributory Pension Scheme

Employee: 8% minimum

Employer: 10% minimum

Calculated on pensionable pay; remitted to a Pension Fund Administrator (PFA). Expatriates' participation depends on employment status and visa category.

National Housing Fund (NHF)

Employee: 2.5% for eligible Nigerian employees; expatriate treatment needs payroll advice

Common payroll issue; applicability to expats depends on status and employer practice.

Industrial Training Fund (ITF)

Employee: 0%

Employer: 1% of annual payroll for covered employers

Employer levy for qualifying businesses with payroll above a statutory threshold.

Health Insurance / NHIA

Employee: Scheme-dependent

Employer: Mandatory coverage obligation for residents/employers; contribution design varies

Private HMO and NHIA arrangements are common for formal employers.

🛒 VAT Rates

7.5%

Standard

The Nigeria Tax Act 2025 retained the standard VAT rate at 7.5% from 1 January 2026, with exemptions/zero-ratings for listed supplies including basic food items, medical supplies and educational materials.

🧾 Sample Payslip Decoder

Gross Salary NGN 2,000,000/month

Basic and consolidated allowances (housing, transport, utilities) + NGN 2,000,000

Employee pension contribution (8% of pensionable pay, est. NGN 1,000,000 basic) - -NGN 80,000

PAYE estimate (2026 NTA bands after consolidated relief allowance) - -NGN 285,000

Health/HMO employee contribution (typical employer scheme) - -NGN 25,000

Net Salary (Take-home) Approx. NGN 1,610,000/month

Illustrative for 2026 under the Nigeria Tax Act 2025. Annual gross NGN 24,000,000; CRA (consolidated relief allowance) of approx. NGN 5,040,000 and pension of NGN 960,000 reduce taxable income to approx. NGN 18,000,000; NTA slab rates (0%/15%/18%/21%) yield approx. NGN 3,378,000/year (NGN 281,500/month, rounded to NGN 285,000). Actual PAYE depends on state of employment, annualisation method, benefit classification and approved reliefs. Expatriate packages often include housing and security allowances that alter the salary structure significantly.

🌍 Special Expat Tax Rules

No automatic expatriate tax holiday. Tax residence, PAYE, benefits-in-kind, offshore salary recharge and home-country relief need written review. Nigeria Revenue Service (NRS) replaced FIRS for federal tax administration from 2026.

📋 Double Tax Treaties

Nigeria has tax treaties with a limited number of countries. The state Internal Revenue Services administer PAYE/PIT; treaty residence certificates and practical state/federal administration matter for expats.

State Internal Revenue Services (for PAYE/PIT); Nigeria Revenue Service (NRS) for federal taxes from 2026

https://firs.gov.ng

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