Who Needs to File Taxes in Nigeria?
Under the Nigeria Tax Act (NTA) 2025, which took effect on 1 January 2026, every person who earns income in Nigeria is required to file a tax return with the Nigeria Revenue Service (NRS), formerly the Federal Inland Revenue Service (FIRS), or their State Internal Revenue Service (SIRS).
This applies to:
- Employees earning above ₦800,000 per year (the new tax-free threshold)
- Self-employed individuals and freelancers
- Sole proprietors and business owners
- Companies registered with CAC (Corporate Affairs Commission)
- Non-resident individuals earning Nigerian-sourced income
A major change under the NTA 2025 is that individuals earning ₦800,000 or less per year are now fully exempt from personal income tax, which is a big relief for minimum wage earners.
Key Tax Filing Deadlines
Missing these deadlines can result in penalties of ₦100,000 in the first month and ₦50,000 for each subsequent month, plus interest on unpaid taxes.
- Personal Income Tax (PIT): 90 days after the end of the tax year (31st March for calendar-year filers)
- Companies Income Tax (CIT): Within 5 months after the end of the accounting period (by 31st May for December year-end companies)
- VAT Returns: 21st of the following month
- Withholding Tax (WHT): 21st of the following month
- PAYE (Pay As You Earn): 10th of the following month
Documents You Need to File Your Taxes
Before you begin the filing process, gather these documents:
- Tax ID (formerly TIN), which is now mandatory for all taxable persons under the Nigeria Tax Administration Act (NTAA) 2025. If you don't have one, you'll need to register for a Tax ID first
- Valid ID (National ID, passport, or driver's licence)
- Income statements or payslips for the tax year
- Bank statements (6–12 months)
- Receipts for deductible expenses (rent receipts for rent relief, pension contributions, life insurance, etc.)
- Previous year's tax returns (if applicable)
Step-by-Step: How to File Your Taxes
Step 1: Get Your Tax ID
Every taxpayer in Nigeria needs a Tax ID (formerly known as TIN). Under the NTAA 2025, Tax ID registration is mandatory for all taxable individuals, businesses, and even non-resident persons making taxable supplies in Nigeria. Your Tax ID is a permanent identifier that links all your tax obligations to a single, verifiable identity. You can register online through the NRS portal or through an accredited tax practitioner.
Step 2: Calculate Your Taxable Income
Add up all income earned during the tax year. Under the NTA 2025, Nigeria uses a new progressive tax rate structure:
| Annual Income Band | Tax Rate |
|---|---|
| First ₦800,000 | 0% (exempt) |
| Next ₦2,200,000 (₦800,001 – ₦3,000,000) | 15% |
| Next ₦7,000,000 (₦3,000,001 – ₦10,000,000) | 18% |
| Next ₦15,000,000 (₦10,000,001 – ₦25,000,000) | 21% |
| Next ₦25,000,000 (₦25,000,001 – ₦50,000,000) | 23% |
| Above ₦50,000,000 | 25% |
For companies, the standard CIT rate has been reduced from 30% to 25%. Small companies (gross turnover ≤₦50 million, fixed assets ≤₦250 million) are now fully exempt from CIT.
Step 3: Claim Your Reliefs and Allowances
The NTA 2025 replaced the old Consolidated Relief Allowance (CRA) with a new system:
- ₦800,000 tax-free threshold: The first ₦800,000 of income is completely exempt
- Rent relief: 20% of annual rent paid, capped at ₦500,000 (you must provide evidence of rent payments)
- Pension contributions: Employee contributions (8% of basic, housing, and transport) remain deductible
- Life insurance premiums
- National Health Insurance contributions
Note: The old CRA (₦200,000 or 1% of gross income plus 20% of gross income) no longer applies under the NTA 2025.
Step 4: Complete and Submit Your Returns
You can file your returns through the NRS online portal or submit physical copies at your nearest NRS office. The self-assessment form requires details of your income, reliefs claimed, and tax already deducted at source.
Step 5: Pay Any Outstanding Tax
If your self-assessment shows additional tax owed beyond what was deducted at source, you'll need to make payment through approved channels. The NRS accepts payments via banks and designated payment platforms.
What Happens If You Don't File?
Under the NTAA 2025, the consequences of not filing your taxes include:
- Late filing penalty: ₦100,000 in the first month, plus ₦50,000 for each subsequent month of default
- Late payment penalty: 10% of the tax amount payable
- Interest on unpaid tax: Charged at the prevailing Central Bank rate
- Non-compliance penalty: Up to ₦20 million for failure to comply with NRS notices, plus ₦2 million per day the failure continues
- Prosecution: In extreme cases, willful tax evasion is a criminal offence carrying up to 6 months imprisonment
- Inability to obtain Tax Clearance Certificate (TCC): Without a TCC, you cannot bid for government contracts or access certain banking services
Need Help Filing Your Taxes?
The NTA 2025 brought significant changes to how taxes are calculated and filed in Nigeria. Our team of registered tax practitioners stays current with the latest regulations and can handle the entire process for you, from gathering documents to submitting your returns and obtaining your Tax Clearance Certificate.