Financial Q&A: Your Questions Answered
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What is the deadline for remitting withholding tax and the penalties?
The Timeline for remitting the deducted tax to the NRS is by the 21st day of the following month. Under the Nigeria Tax Administration Act 2025 and the Deduction of Tax at Source (Withholding) Regulations 2024 (now effective in 2026), the rules and penalties have been sharpened to enforce digital compliance.
How do I register for VAT?
In 2026, the process for VAT registration in Nigeria is governed by the Nigeria Tax Administration Act 2025. The biggest change is that registration is now largely automatic through a "One-Number" system. Here is exactly how you register depending on your business type:
Do I need to register for VAT as a small business in Nigeria?
Under the Nigeria Tax Act 2025 and the Nigeria Tax Administration Act 2025 (both effective as of January 1, 2026), the rules for VAT registration have been simplified to favor micro and small businesses. The short answer is: If your annual turnover is ₦50 million or less, you are not required to register for, charge, or remit VAT. Here is the breakdown of the new rules for 2026:
What happens to WHT if a small company is working with a supply contract morethan ₦2 million?
This is where the law gets tricky. There is a "policy contradiction" between the Nigeria Tax Act 2025 and the Withholding Tax (WHT) Regulations 2024. If the transaction is more than ₦2 million, the client is technically required to deduct WHT, even if you are a small company. Here is how that works and how you handle it:
How will the new tax reforms affect WHT for small business
Under the latest 2024/2025 regulations, if you are a Small Company (turnover ≤ ₦50m), you are generally exempt from having WHT deducted from your payments by your clients, provided you have a valid TIN and the transaction is ₦2m or less.