Tax in Nigeria: VAT, income tax, company tax, capital gains
7.5%
Nigeria charges 7.5% VAT on most goods and services. The rate is verified against Nigeria Revenue Service (NRS, formerly FIRS) on 19 August 2026; the top personal income-tax rate is 25% (2026 tax year, Nigeria Tax Act 2025, Official Gazette No. 117 (copy hosted by Lagos State Internal Revenue Service)), and the headline company tax rate is 30% (OECD Corporate Tax Statistics).
VAT in Nigeria
Value-added: VAT is charged on sales and reclaimed on purchases, so only the added value is taxed.
- Standard rate
- 7.5%
- Local name
- VAT — Value Added Tax
- Type
- VAT
- Reduced rates
- None on record
- Filing
- Quarterly / Monthly / Annual
- Authority
- Nigeria Revenue Service (NRS, formerly FIRS)
- Current rate since
- 1 January 2026
Income tax in Nigeria
The top personal income-tax band is 25% for the 2026 tax year.
Company tax in Nigeria
The headline corporate income tax rate is 30%. In effect since 1 January 2026.
Indicative only: confirm with Nigeria's national tax authority. 30% general rate from OECD Table II.1 2026 only; the Nigeria Tax Act 2025 (effective 2026-01-01) text could not be read (NRS site is client-rendered). Small companies are also exempt from the new 4% development levy (applies to other companies) per the Committee. NTA 2025 also introduced a 15% minimum effective tax rate for large companies/MNE group members (secondary sources; not confirmed). | Cross-check: OECD 2026: central statutory CIT 30%, combined (central+sub-central) 30% Reduced rate 0%, not modelled as a small-company rate: Small companies: turnover not more than NGN 100 million and total fixed assets not more than NGN 250 million (professional-services firms excluded), from 1 January 2026 under the Nigeria Tax Act 2025 - per Presidential Fiscal Policy and Tax Reforms Committee; some secondary sources cite a NGN 50m threshold in the Act text - not confirmed on the Act itself.
Capital gains tax in Nigeria
- Shares
- Taxed as ordinary income: chargeable gains are included in the individual's assessable income and taxed at the progressive personal income tax rates 0-25% (0% first N800,000; 15%; 18%; 21%; 23%; 25% above N50m)
- Property
- Taxed as ordinary income at progressive personal income tax rates 0-25%
- Holding period
- none
Ask your AI assistant about tax in Nigeria
The figures on this page are callable by any MCP-compatible assistant through the free Tax MCP. Add https://taxmcp.ai2fin.com as a custom connector in Claude, ChatGPT, Cursor or your own agent — no login, no API key — then ask:
- “What is the VAT rate in Nigeria, and what is the source?”
- “Estimate income tax in Nigeria on NGN 60,000 for 2026.”
- “What is the company tax rate in Nigeria and how is it sourced?”
Connect in three steps, and what a connected answer looks like: Tax MCP.
Nigeria, answered
Questions about tax in Nigeria
- What is the VAT rate in Nigeria?
- The standard VAT (Value Added Tax) rate in Nigeria is 7.5%, verified against Nigeria Revenue Service (NRS, formerly FIRS) on 19 August 2026. Value-added: VAT is charged on sales and reclaimed on purchases, so only the added value is taxed.
- What is the top income tax rate in Nigeria?
- The top personal income-tax band in Nigeria is 25% for the 2026 tax year, verified against Nigeria Tax Act 2025, Official Gazette No. 117 (copy hosted by Lagos State Internal Revenue Service) on 6 October 2026. The free income-tax calculator on this site works through the bands below it, and shows the rate table it used.
- What is the company tax rate in Nigeria?
- The headline corporate income tax rate in Nigeria is 30%, as published by OECD Corporate Tax Statistics (checked 6 October 2026, verification pending). Indicative only: confirm with Nigeria's national tax authority. 30% general rate from OECD Table II.1 2026 only; the Nigeria Tax Act 2025 (effective 2026-01-01) text could not be read (NRS site is client-rendered). Small companies are also exempt from the new 4% development levy (applies to other companies) per the Committee. NTA 2025 also introduced a 15% minimum effective tax rate for large companies/MNE group members (secondary sources; not confirmed). | Cross-check: OECD 2026: central statutory CIT 30%, combined (central+sub-central) 30% Reduced rate 0%, not modelled as a small-company rate: Small companies: turnover not more than NGN 100 million and total fixed assets not more than NGN 250 million (professional-services firms excluded), from 1 January 2026 under the Nigeria Tax Act 2025 - per Presidential Fiscal Policy and Tax Reforms Committee; some secondary sources cite a NGN 50m threshold in the Act text - not confirmed on the Act itself.
- How is capital gains tax charged in Nigeria?
- In Nigeria, gains are added to income and taxed at the ordinary rates, verified against Nigeria Tax Act, 2025 (Act No. 7) - Federal Republic of Nigeria Official Gazette No. 117 Vol. 112 of 26 June 2025, copy hosted by Lagos State Internal Revenue Service on 6 October 2026. On shares: Taxed as ordinary income: chargeable gains are included in the individual's assessable income and taxed at the progressive personal income tax rates 0-25% (0% first N800,000; 15%; 18%; 21%; 23%; 25% above N50m) Holding period: none
- Can an AI assistant look up tax rates for Nigeria?
- Yes. The free Tax MCP at https://taxmcp.ai2fin.com gives Claude, ChatGPT, Cursor or any MCP-compatible agent the same sourced figures as this page: the VAT rate, an income-tax estimate, the company tax rate, the capital gains rule and a side-by-side comparison with other countries, each answer citing the authority and the date it was checked. Add the endpoint as a custom connector; there is no login or API key.
Sources
- Nigeria Revenue Service (NRS, formerly FIRS)
- Nigeria Tax Act 2025, Official Gazette No. 117 (copy hosted by Lagos State Internal Revenue Service)
- OECD Corporate Tax Statistics
Last checked 6 October 2026. General information computed from published government rates, not tax advice. Check the linked authority or a registered adviser before relying on a figure.
See every rate side by side in the tax rates table, put Nigeria next to another country in the comparison tool, or read the tax facts.
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