In 2026, the Nigeria Tax Act 2025 has streamlined the Company Income Tax (CIT) landscape. The major change is the simplification of company categories and the introduction of a new "Development Levy."
Here is the current breakdown for 2026:
1. The Two-Tier CIT Rates
Under the new law, the three-tier system of the old Finance Acts has been collapsed into a two-tier system. You are now either a "Small" company or a "Standard" (Large) company, and your tax rate now depends almost entirely on your annual turnover:
| Company Size | Annual Turnover | 2026 CIT Rate |
|---|---|---|
| Small Company | ≤ ₦100 million | 0% (Exempt) |
| Large/Standard Company | > ₦100 million | 30% |
2. The New "Development Levy" (4%)
Starting in 2026, a unified 4% Development Levy on assessable profits has replaced several fragmented taxes. This is a "consolidated" charge that effectively replaces:
- Tertiary Education Tax (formerly 3%)
- NITDA Levy (1%)
Exemption: Small companies (turnover ≤ ₦50m) are exempt from this levy.
3. Minimum Effective Tax Rate (15%)
For the "Big Players," a new rule ensures that large corporations cannot use excessive incentives to avoid paying their fair share.
- Applies to: Nigerian companies with a turnover ≥ ₦50 Billion or those that are part of a Multinational Enterprise (MNE) group with global revenue ≥ €750 Million.
- The Rule: If your effective tax rate drops below 15% due to various credits and incentives, you must pay a "top-up tax" to bring your total contribution to at least 15%.
4. Key Exceptions to the Rules
- Professional Services: If you are a lawyer, accountant, or consultant, you are excluded from the Small Company exemption. You must pay CIT even if your turnover is below ₦100 million.
- Capital Gains Integration: Capital Gains Tax (CGT) is no longer a separate 10% tax. For companies, capital gains are now treated as regular business income and taxed at the 30% CIT rate.
Summary of Your Liability
If you are running a standard large business in 2026, your "Effective Headline Rate" is roughly 34% (30% CIT + 4% Development Levy) of your taxable profit.