This article provides a detailed overview of the corporate tax regime for companies operating in Nigeria as of 2025. The information presented here focuses exclusively on current rates, brackets, and applicable levies relevant to domestic corporations in Nigeria (NG).
Corporate Income Tax Brackets (2025)
Nigeria employs a progressive corporate income tax system, where companies are assessed based on their annual profits in Nigerian Naira (NGN). The table below summarizes the official corporate income tax brackets and rates for the year 2025:
| Profit Bracket (NGN) | Rate (%) |
|---|---|
| ₦0 – ₦25,000,000 | 0% |
| ₦25,000,000.01 – ₦100,000,000 | 20% |
| Above ₦100,000,000.01 | 30% |
There is no corporate income tax for companies with profits up to ₦25,000,000. Above this threshold, increasing rates apply, with a top rate of 30% for the largest corporate profits.
Assessment Basis
Nigerian corporate tax is assessed on the profits of companies registered or operating in the country. The assessment is based on declared and audited corporate profits, taking into account allowable deductions and exempt income.
Additional Corporate Surtaxes and Levies
Alongside the base corporate income tax, several other levies and taxes may apply depending on a company’s activity, profit level, and sector. The table below outlines key surtaxes in effect for 2025:
| Name/Condition | Rate (%) | Tax Base | Details |
|---|---|---|---|
| Tertiary Education Tax | 3% | Assessable Profit | Applies to all Nigerian companies annually |
| Minimum Tax | 0.5% | Gross Turnover (less franked investment income) | Payable by companies with no taxable profits or with tax below this minimum |
| Information Technology Levy | 1% | Profit Before CIT | For companies with annual turnover of ₦100 million or more |
| NASENI Levy | 0.25% | Profit Before Tax | Applies to companies in specified sectors with turnover above ₦100 million (banking, ICT, aviation, etc.) |
| Police Fund Levy | 0.005% | Net Profit | Applicable to all companies until 23 June 2025 |
Tertiary Education Tax
All Nigerian companies must pay a tertiary education tax at 3% of assessable profits, contributing to the nation’s educational infrastructure.
Minimum Tax Provisions
For companies with low or no taxable profits, a minimum tax of 0.5% of gross turnover (less franked investment income) is required. This provision ensures a baseline tax contribution from most corporate entities.
Sector-Specific and Turnover-Based Levies
Companies with annual turnover of ₦100 million and above are subject to an Information Technology levy at 1% of profit before CIT. Additionally, companies in sectors such as banking, mobile communication, ICT, aviation, maritime, and oil & gas with turnover exceeding ₦100 million pay a NASENI levy at 0.25% of profit before tax.
Temporary Police Fund Levy
Until 23 June 2025, all companies in Nigeria contribute a Police Fund Levy calculated as 0.005% of net profit. Note that this levy is time-bound.
Key Features of Nigeria’s Corporate Tax System
The Nigerian corporate tax regime in 2025 is characterized by a progressive rate structure combined with several sector- and turnover-based levies. It’s essential for businesses to consider all applicable charges to understand their true tax liability. Where the main rate is not available in official documents, this usually reflects ongoing updates or government reporting schedules.
Pro Tips for Managing Nigerian Corporate Tax in 2025
- Monitor Your Turnover Thresholds: If your company’s turnover approaches ₦100 million, prepare for additional levies such as the Information Technology and NASENI levies to avoid surprises at year-end.
- Confirm Applicability of Sector-Specific Levies: Companies in banking, ICT, aviation, maritime, and oil & gas should proactively determine their obligations under the NASENI levy to ensure compliance.
- Minimize Minimum Tax Exposure: Even without profits, review your gross turnover and investment income classifications to accurately determine minimum tax liabilities and optimize your tax position.
- Integrate Tertiary Education Tax into Budgeting: Include the mandatory 3% Tertiary Education Tax in your corporate planning, as it applies regardless of profit margins if assessable profits exist.
- Watch for Temporary Surcharges: The Police Fund Levy is set to expire mid-2025. Review your mid-year compliance calendar to manage this shifting obligation.
Additional Resources
For official documentation, updates, and full regulatory texts, visit the website of the Federal Inland Revenue Service.
Nigeria’s corporate tax regime in 2025 remains progressive, with specific rates and valuable incentives for smaller businesses. The addition of sector-based and turnover-related levies means companies should conduct regular tax reviews to avoid unforeseen liabilities. Always factor in surtaxes and minimum tax provisions in your strategic planning, and consult the FIRS site for the latest updates or clarifications.