Nigeria

Individual - Taxes on personal income

Last reviewed - 29 May 2026

Individuals resident in Nigeria are taxed on their worldwide income. A unilateral tax relief is available when, in any year of assessment, a Nigerian resident earns income or profits from a foreign source that have already been taxed in that source country and are also taxable in Nigeria. In such cases, the tax paid abroad may be credited against the tax payable in Nigeria.

Personal income tax (PIT) rates

The table below shows a summary of the taxable income tax bands and applicable rates of tax on an annual basis.

Annual income (NGN)	PIT rate (%)
First 800,000	0
Next 2,200,000	15
Next 9,000,000	18
Next 13,000,000	21
Next 25,000,000	23
Above 50,000,000	25

Note that employees who earn not more than the national minimum wage (NGN 70,000) are no longer liable to tax or deduction of monthly PAYE.

Minimum income tax

The old minimum tax rule (1% of total income) is no longer referenced under the Nigeria Tax Act and has effectively been replaced by the expanded 0% tax band.

Capital gains tax (CGT) on termination benefits

For income that qualifies as termination benefits (compensation for loss of office), only the amount exceeding NGN 50 million represents chargeable gains, a significant increase from the former NGN 10 million threshold (see ‘Chargeable gains’ in the Income determination section).