Quick Answers for
Nigerian Business Owners

Any business with an annual taxable turnover of ₦25 million or more must register for VAT with FIRS. Voluntary registration is available and beneficial for businesses that want to recover input VAT on purchases.

Non-resident companies supplying digital services to Nigerian customers (e.g. software, streaming, online advertising) must also register, regardless of turnover.

Following the 2026 Finance Act changes, monthly VAT returns are now due by the 21st of the following month — a change from the previous last-working-day deadline.

• Returns must be filed electronically via the FIRS TaxPro-Max portal.
• Late filing attracts a penalty of 5% of the tax due per month.
• Input VAT on vehicles is no longer fully recoverable unless used exclusively for business.

VAT-exempt and zero-rated supplies include:

• Basic food items — unprocessed staples like rice, yam, wheat flour, and vegetables.
• Medical and pharmaceutical products — drugs listed in government-approved schedules.
• Educational materials — books and instructional materials.
• Exported goods and services — zero-rated.
• Baby products and certain agricultural inputs following 2026 amendments.

Because the list changes with each Finance Act, we recommend a periodic VAT health-check to ensure your products/services are correctly classified.

Yes — where your input VAT consistently exceeds your output VAT (common for exporters and businesses making largely exempt supplies), you can apply to FIRS for a refund or offset.

In practice, FIRS refunds are slow. Most businesses prefer to carry forward excess input VAT credits. Our team manages the refund application process and FIRS correspondence on your behalf to minimise delays.

Yes — this is one of our core services. We handle all correspondence with FIRS and state revenue authorities (LIRS, RS-IRS, etc.), prepare audit responses, reconcile tax records, and negotiate assessments on your behalf.

Our track record includes successfully reducing FIRS assessments by up to 60% for clients who engaged us early in the audit process. Early engagement is critical — the further an audit progresses without representation, the harder it becomes to challenge assessments.

Missing FIRS deadlines triggers automatic penalties and interest. The key dates every Nigerian company must track:

• Company Income Tax (CIT): 6 months after financial year-end (e.g. 30 June for a 31 December year-end).
• VAT: 21st of the following month.
• PAYE / WHT: 10th of the following month.
• Tertiary Education Tax (EDT): 2% of assessable profit, filed with CIT.
• Annual Returns (FIRS): Same as CIT deadline.

FIRS applies automatic penalties for late filing and payment:

• Late payment: 10% of tax due, plus 5% interest per annum.
• Late VAT filing: ₦50,000 for the first month; ₦25,000 for each subsequent month.
• Late CIT filing: Additional assessments; prosecution can follow extended non-compliance.

The good news: penalties are negotiable when addressed proactively. We recommend engaging us immediately if you have outstanding filings — early engagement consistently achieves better outcomes with FIRS.

PAYE is deducted monthly by employers and remitted to the relevant State Inland Revenue Service (SIRS) by the 10th of the following month. Tax is computed on taxable income, which is gross income minus allowable deductions:

• Tax-free allowance: 20% of gross income + ₦200,000 (or ₦300,000, whichever is higher), plus Housing, Transport, and Meal allowances.
• Pension contributions (8% employee) and NHF contributions are also deductible.

Tax rates on the resulting taxable income: 7% (first ₦300K) → 11% → 15% → 19% → 21% → 24% (above ₦3.2M).

As an employer in Nigeria, you must:

• Deduct PAYE monthly and remit to the relevant SIRS by the 10th of the following month.
• Remit pension contributions (8% employee + 10% employer) to a licensed PFA.
• Register with and remit to NSITF, ITF, and NHF as applicable.
• File an annual employer's tax return (Form H1) by 31 January each year.

Failure to comply attracts penalties up to 10% of unpaid tax plus interest. We offer end-to-end managed payroll services that handle all deductions, remittances, and filings.

Withholding Tax is a tax deducted at source by the party making certain payments. The deducted WHT is remitted to FIRS by the payer, and the recipient receives a WHT credit note that offsets their income tax liability.

• 10% on dividends, rent, and interest.
• 5% on professional fees, management fees, and general contracts.
• 2.5% on construction contracts and surveys.

WHT is easy to miss, especially for businesses regularly paying rent, professional fees, or commissions. Non-compliance (i.e. failing to withhold and remit) makes the payer, not the recipient, liable for the unpaid tax.

Following CAMA 2020 amendments, CAC enforcement has significantly increased. Key requirements:

• Annual returns are due within 42 days of the AGM, or by 30 June for small companies not required to hold AGMs.
• Late filing attracts a daily fine of ₦1,000 per day for private companies (₦2,000 for public).
• All returns must be filed electronically via the CAC e-portal — manual filing is no longer accepted.
• Directors' personal details must be current — CAC can strike off companies with outdated records.
• Beneficial ownership (BOSC) information is now mandatory.

Under CAMA 2020, small companies with turnover below ₦120M may qualify for audit exemption — but must still prepare financial statements. Audited accounts are required for:

• Securing bank loans or overdraft facilities.
• Attracting equity investors or venture capital.
• Applying for government tenders or contracts.
• Renewing certain regulatory licences.

We advise most growing startups to audit annually regardless of the exemption — the credibility dividend for investor readiness and banking relationships is significant.

A forensic audit is a court-admissible financial investigation designed to detect fraud, embezzlement, asset misappropriation, or financial misstatement.

Our process is fully confidential: we sign NDAs, operate under professional secrecy rules, and engage only key personnel on a need-to-know basis. We produce written reports suitable for use in legal proceedings, arbitration, or internal disciplinary processes.

Initial consultations are always off the record and without obligation.

A forensic audit is appropriate whenever there are reasonable grounds to suspect financial irregularity. Common triggers include:

• Unexplained drops in profit or revenue despite strong sales.
• Anomalies in supplier payments, expense claims, or petty cash.
• Whistleblower allegations from staff or third parties.
• Disputed business accounts during shareholder disputes or divorce proceedings.
• Pre-acquisition due diligence on a target company.
• Regulator or board-initiated investigation.

Acting early preserves evidence and limits financial exposure. Delays allow perpetrators to conceal or destroy records.

The main taxes for Nigerian SMEs include:

• Company Income Tax (CIT): 0% for small companies (turnover below ₦25M); 20% for medium (₦25M–₦100M); 30% for large companies.
• Value Added Tax (VAT): 7.5% on taxable supplies.
• PAYE: Deducted from employee salaries and remitted to SIRS.
• Withholding Tax (WHT): On dividends, rent, contracts, and professional fees.
• Stamp Duty: On qualifying agreements and instruments.

State-specific levies (business premises levy, signage fees, etc.) may also apply depending on your state of operation.

CIT is levied on the profits of Nigerian companies. It is filed annually via the FIRS TaxPro-Max portal within 6 months of your financial year-end. Key points:

• Small companies (turnover < ₦25M): 0% CIT.
• Medium companies (₦25M–₦100M): 20% CIT.
• Large companies (turnover > ₦100M): 30% CIT.
• Tertiary Education Tax (EDT) of 2% of assessable profit is payable alongside CIT.

Minimum tax provisions apply where a company is loss-making or has a very low tax base — it's not simply zero in those cases.

Our fees are tailored to the scope and complexity of each engagement — we do not use one-size-fits-all price lists. Typical engagement structures include:

• Monthly retainer: For ongoing compliance, payroll, and advisory services.
• Fixed-fee project: For defined scope work such as a tax return, audit, or CAC registration.
• Time-and-materials: For complex forensic investigations or FIRS audit representation.

We always provide a clear engagement letter with agreed fees before any work begins. Book a free strategy session to receive a no-obligation quote.

Yes — we work with clients across Nigeria and internationally. Most of our compliance, tax, and advisory services are delivered remotely via email, secure document sharing, and scheduled video calls.

For forensic investigations or FIRS audit representation that require physical presence, our team travels to the relevant state or FIRS office. We have experience working with clients in Lagos, Port Harcourt, Kano, Enugu, and internationally.