Nigerian Business Tax Filing in 2026

Tax filing in Nigeria has always felt complicated. In 2026, the rules changed significantly. New thresholds, a new tax authority, monthly payment requirements, and enforcement tools that did not exist before.

Whether you run a small product business or a mid-sized company with a finance team, this guide breaks down what changed, what stayed the same, and what you need to do to stay compliant and avoid penalties that can now include having your bank account frozen without a court order.

Read that again slowly.

First, the Agency Has a New Name

The Federal Inland Revenue Service (FIRS) is now the Nigeria Revenue Service (NRS). This is not just a rebrand. It comes with a mandate, new enforcement powers, AI-driven tools to cross-reference bank transactions with tax filings, and a single digital portal for all filings.

Who Must File

Every company registered with the CAC must file an annual tax return. No exceptions.

The Big Change: Small Companies Now Have a Higher Exemption Threshold

Small companies with an annual turnover of ₦100 million or less are now exempt from Company Income Tax (CIT), Capital Gains Tax (CGT), and the new Development Levy.

To qualify:

• Annual turnover of ₦100 million or less
• Fixed assets of less than ₦250 million
• Must not provide professional services

Professional services include law, consulting, accounting, medical, and engineering services.

What Goes Into Your Tax Return

• Financial statements (audited or signed for small companies)
• Tax calculations and capital allowance computations
• Signed declaration by a director or company secretary

False declarations can result in fines up to ₦1 million or three years imprisonment.

When to File

• Established companies: within 6 months after year-end
• New companies: within 18 months or 6 months after first accounting period
• Closing businesses: within 6 months of stopping operations

The Biggest Change: Monthly Tax Payments

From 2026, businesses must pay taxes monthly instead of annually.

• March: First installment
• April: Second installment
• May: Third installment
• Monthly thereafter
• June 30 (next year): Final reconciliation

This shifts tax from a one-time burden to predictable monthly payments.

Record Keeping Requirements

• Must be in English
• Keep records for at least 6 years
• Must be available for inspection

Failure to produce records attracts a ₦100,000 penalty.

Penalties for Non-Compliance

Late Filing

• ₦100,000 for the first month
• ₦50,000 for each additional month

Late Payment

10% penalty plus interest.

The Nuclear Option

The NRS can freeze your business bank account without a court order for unpaid taxes.

A Development Levy for Larger Businesses

A 4% levy applies to companies above the small business threshold.

Practical Steps to Get Ready

1. Confirm your eligibility for exemption
2. Set up monthly payment schedules
3. Organise your records
4. Track your deadlines
5. Work with a tax professional

Where to File

File through the Nigeria Revenue Service (NRS) digital portal.

The Bottom Line

Nigeria’s 2026 tax reform is one of the most significant changes in decades. While small businesses benefit from exemptions, the new enforcement measures and monthly payment structure mean businesses must be more proactive than ever.

Having real-time visibility into your finances is no longer optional. It is essential.

Get started at nomba.com.