Income Taxes

Domestic Income Taxes

• Corporate tax: This is the tax paid by companies on their profits in the year. The tax rate is 30%
• Personal income tax: Self-employed persons are required to pay income tax at graduated rates in four equal installments. The current rate is at 24%
• Pay As You Earn (PAYE): Nigeria has adopted a Pay-As-You-Earn system in calculating personal income tax of employees. This is called PAYE tax. This tax rate progresses from 7% to 24% of taxable income. The taxable income band ranges from NGN 300,000 to NGN 3
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The modern taxing system by the Federal Government of Nigeria under it's taxation arm; Federal Board of Inland Revenue (FBIR) could be tracked back to the year 1939 when the Companies Income Tax Ordinance was created.

After the creation of its first taxation body, it had always changed in response to the changes made to the tax law which are caused by several other factors. In 1978, the tax force on Tax Administration under the leadership of Alhaji Shebu Musa formed the Federal Inland Revenue Service (FIRS) as the operational arm of FBIR.

2017 Budget

• Click here to view the detailed budget statement of 2017 year and the years before.

2004 Budget

• Projected revenue of the budget was N2,160 billion, made up of N1,445 billion from oil and N615 billion from non-oil sources.
• Actual revenue in 2004 was N3,920.5 billion, and oil accounted for N3,354.8 billion 
• Actual expenditure was N1,426.2 billion 
• The fiscal operations of the federal government resulted in a current account surplus of N220.8 billion, and an overall deficit of N172.6 billion or 1.51% of your GDP.