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Various Taxes in Nigeria; what you should know

In plain terms, taxation has been described as a way of making persons, individuals and companies contribute to growth and development of a country, through payment of money via legalized levies according to their level of income or any other ... Read More

WHY OUTSOURCE YOUR ACCOUNTING SYSTEM

  WHY OUTSOURCE YOUR ACCOUNTING SYSTEM Starting a business as an entrepreneur is because you had a dream. You saw a need or a problem common to many individuals or businesses, and you had an idea for a product that would meet ... Read More

Steps to get your start-up on track

Steps to get your start-up on track From fledgling startups to well-established ventures, companies today need to be ready to pivot as unpredictable markets could demand a shift in a business model. At times, it can seem difficult (even impossible) to weather these extraneous forces -- especially ... Read More

Outrageous Compliance

OUTRAGEOUS COMPLIANCE; RCSA   Risk & Control Self-Assessments (RCSA) have become a handy tool to communicate to management, regulators and others that an organization has conducted an analysis of their risks to understand both the severity and likelihood of the occurrence of an event.  Each ... Read More

Technology in Small Business

Today’s small business operate within the fastest moving commercial environment in history. While startups are in their early stages, the demand for technology are typically relatively basic. However these needs can expand quickly as the business starts to get traction and founders ... Read More

Effect of Human Resources Software on Your HR Department

    Human resources software is one of the most powerful tools that you can invest in for your business. Functions range from the very basic to the incredibly complex, and no matter the type or size of your company you'll be able to find human ... Read More

Amendments to IFRS for Small and Medium-sized Entities (SMEs)

The IASB has issued amendments to the IFRS for Small and Medium-sized Entities (IFRS for SMEs), after completing its first comprehensive review of the standard. The objective of the review was to consider implementation experience and developments in full IFRS since IFRS for SMEs was issued in 2009 and make ... Read More

Using Risk Management to Respond to CRISIS

    When a crisis hits your organisation, how will you find out about it as a board member? Through employees, customers, or maybe virally through social media? Hopefully though, your organisation has a well-prepared and well-rehearsed crisis plan, in which case you will most likely learn about the facts of the crisis ... Read More

Risk managers, CIBN partner on certification

    FROM next year, the Risk Managers Association of Nigeria (RIMAN), partnering the Chartered Institute of Bankers of Nigeria (CIBN), will be awarding Risk Management Certification to practitioners and others aiming to build a career in the field. This followed the signing of ... Read More

Corporate governance for NGOs not for tax purposes, says FRC

  The Financial Reporting Council (FRC) of Nigeria has affirmed that the inclusion of not-for-profit Non Governmental Organisations(NGOs) in the National Code of Corporate Governance (NCCG) in the country is not for taxation purposes. Speaking at the public hearing in Lagos on the NCCG for NGOs over the weekend, the Chairman of ... Read More

Various Taxes in Nigeria; what you should know

Under the   Nigeria Tax Administration Act (NTAA) 2025   and the   Deduction of Tax at Source (Withholding) Regulations 2024, the process for managing "tax at source" (Withholding Tax or WHT) has been modernized to reduce the burden on small businesses while tightening enforcement for larger entities.

Here is the breakdown of how to handle returns and remittances in 2026.

    1. What is "Deduction at Source"?

It is a system where the payer (person making the payment) is legally required to deduct a percentage of the transaction amount and remit it directly to the   Nigeria Revenue Service (NRS)  on behalf of the recipient.

     The Receipt:   Once you remit the tax, the NRS issue a credit note to the beneficiary, which they can use to reduce their final Company Income Tax (CIT) liability.

    2. Filing Deadlines (The 2026 Rules)

The timing of your returns depends on the type of tax being deducted: Tax Type Filing & Remittance Deadline

  PAYE (Personal Income Tax) Not later than the   10th day   of the following month.   Capital Gains Tax (CGT) Not later than the   10th day   of the following month.   Withholding Tax (WHT) Not later than the   30th day   of the month following the payment.

    3. Key Exemptions for Small Businesses

To reduce the "undue burden" mentioned earlier, the 2026 regulations include a minimis threshold :

     The ₦2 Million Rule:   Transactions of   ₦2,000,000 or less   in a calendar month are exempt from WHT, provided the supplier has a valid Tax Identification Number (TIN).

     Small Company Status:   If your business turnover is under ₦50M, you are largely exempt from many of these administrative obligations when dealing with other small businesses.

    4. What Must the Return Contain?

When you file your WHT return through the   NRS Taxpayer Self-Service Portal , the submission must include:

 1.   Beneficiary Details:   Name, address, and TIN (or NIN for individuals).

 2.   Transaction Details:   The nature of the service (e.g., consultancy, construction, or supply).

 3.   Financials:   The gross amount of the invoice and the specific amount of tax deducted.

 4.   Proof of Payment:   Evidence of remittance to the authorized bank or portal.

    5. Penalties for Non-Compliance (The "Cost of Failure")

The 2026 regime is strict about "failing to act as an agent."

     Failure to Deduct:   You are liable for   40% of the amount   you failed to deduct.

     Failure to Remit:   If you deducted the money but didn't pay it to the NRS, you must pay the   Original Tax + 10% penalty + CBN Interest Rate .

     General Filing Default:   Failing to file the return attracts a fine of   ₦100,000   for the first month and   ₦50,000   for every month the default continues.

    Pro-Tip for Administrative Compliance

If a supplier does   not   have a TIN, the law requires you to deduct tax at   double the standard rate . This is a nudge from the government to ensure everyone is registered in the tax net. Always verify a vendor's TIN on the NRS portal before making a payment to avoid being held liable for the difference.

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