Financial Q&A: Your Questions Answered
Search our comprehensive knowledge base or submit your own question. We provide clear, practical answers to real financial questions from Nigerian entrepreneurs.
All Questions
Showing 5 of 72 results
When is company income tax due for payment, and what is the penalty for late filing?
In 2026, the Nigeria Tax Administration Act 2025 (NTAA) has sharpened the timeline for filing and payment to ensure faster revenue collection. While the "due date" remains linked to your accounting year-end, the financial consequences of missing it have become much more severe.
What is the current company income tax rate in Nigeria?
In 2026, the Nigeria Tax Act 2025 has streamlined the Company Income Tax (CIT) landscape. The major change is the simplification of company categories and the introduction of a new "Development Levy."
How does the Mandatory E-Invoicing, introduced in the new law works?
Based on the Nigeria Tax Administration Act 2025 and the rollout by the Nigeria Revenue Service (NRS) (formerly FIRS), mandatory e-invoicing is the new standard for 2026. If your business earns over ₦100 million, you are now required to move away from paper or simple PDF invoices to a "Pre-Clearance" digital model. Here is exactly how it works:
How will the new tax reforms impact small and medium enterprises in Nigeria?
Based on the Nigeria Tax Act 2025 (signed into law in June 2025 and effective January 1, 2026), the "Small" and "Medium" enterprises are now split. The new reforms create a sharp divide. Small businesses (turnover ≤ ₦100 million) are the biggest winners, effectively becoming tax-exempt. Medium businesses (turnover > ₦100 million) face a challenging tax hike as the "medium" category has been abolished, pushing them into the standard corporate tax bracket.
What are the new PAYE tax rates effective 2026?
Under the Nigeria Tax Act 2025, which officially took effect on January 1, 2026, the PAYE (Pay-As-You-Earn) system has undergone its most significant overhaul in decades. The new law introduces a more progressive structure that eliminates the old "Consolidated Relief Allowance" (CRA) and replaces it with a higher tax-free threshold and a specific Rent Relief.