🇳🇬 Tax26 Jun 2025
Nigeria consolidates its tax laws, with a 15% minimum rate for large companies from 2026
Nigeria's President signed the Nigeria Tax Act 2025 on 26 June 2025, in force from 1 January 2026. It replaces the Companies Income Tax Act and other tax laws with one Act. Companies with turnover of at least N20 billion, and members of multinational groups, must pay a minimum effective tax rate of 15%, and Nigerian parent companies may owe a top-up tax. The 30% rate for large companies stays.
The Act is one of four tax reform laws signed in June 2025.
What changed
- Consolidation: the Companies Income Tax Act and other tax laws are repealed and brought into the Nigeria Tax Act.
- Minimum effective tax rate: 15% for companies with turnover of N20 billion or more and for members of multinational groups. The rate is worked out from profit before tax in the audited accounts, with adjustments.
- Top-up tax: Nigerian parent companies may pay top-up tax so their groups reach the global minimum rate, alongside new controlled foreign company rules.
- Large companies: the 30% rate stays. The power to cut it to 25% by presidential order is removed.
- Small companies: a new definition with exemption from companies income tax. Sources differ on the turnover threshold.
Who is affected
Nigerian companies, especially large and multinational groups, and their finance teams.