Please note
Belmadeng is an independent study platform and is not affiliated with the FIRS / Nigeria Revenue Service (NRS). This is general information, not tax or legal advice — for your situation consult a qualified tax professional. From 1 January 2026 the Federal Inland Revenue Service (FIRS) became the Nigeria Revenue Service (NRS); use only the official portals (nrs.gov.ng and taxpromax.gov.ng), and confirm current rates and rules there.
What CIT is
Company Income Tax (CIT) is the federal tax on companies’ profits, assessed and collected by the NRS.
The rate (now 25%)
Under the 2026 reform, the CIT rate for medium and large companies was reduced from 30% to 25% (phased). This is a headline change of the new tax regime.
Small-company exemption
A major relief: small companies are exempt from CIT (and from Capital Gains Tax and the new Development Levy). A small company is defined as one with annual turnover of ₦100 million or below and total fixed assets not exceeding ₦250 million (the turnover threshold rose from the old ₦25m). Many startups and SMEs now fall under this.
The Development Levy
The reform introduced a Development Levy on larger companies (consolidating several older levies) — small companies are exempt. Confirm applicability for your company size.
How to file
Companies file CIT returns on TaxProMax (annually), using an active TIN, and keep accurate turnover and fixed-asset records — essential to prove small-company status.
Tips
- Know whether you qualify as a small company.
- Keep verifiable records of turnover and assets.
- File on TaxProMax with an active TIN.
CIT rates in 2026
Company Income Tax (CIT) is the tax on company profits. Under the reform, the headline rate for large companies remains 30% (with provision for a future reduction to 25% by presidential order on the advice of the National Economic Council). The big story, though, is at the small end: qualifying small companies are exempt from CIT (effectively 0%). Because the exact rate that applies depends on your company's size classification, the first thing to establish is which band you fall into — and to confirm current rates on the official NRS portal, since details can change.
The small-company exemption
The reform raised the small-company exemption threshold substantially above the old ₦25 million. Reported figures for the exemption have ranged around ₦50 million to ₦100 million in annual turnover (with a fixed-asset limit also applying), and qualifying small companies are exempt not just from CIT but also from Capital Gains Tax and the new Development Levy. Because the precise threshold has been reported inconsistently and can be revised, don't assume a single number: confirm the current small-company definition and thresholds on the official NRS portal or with a tax adviser before relying on the exemption — and keep records, since they're your proof of eligibility.
The new Development Levy
The reform introduces a Development Levy (a single levy, reported at around 4%) that consolidates several older earmarked levies (such as education-tax and technology/innovation levies) into one charge for larger companies — simplifying what used to be multiple separate levies. Crucially, small companies (and non-resident companies) are exempt. So for a qualifying small business the levy doesn't bite; for a larger company it replaces a cluster of previous levies with one. As with the rates above, treat the percentage as indicative and confirm the current position officially.
Frequently asked questions
What is the Company Income Tax rate in 2026?
It was reduced from 30% to 25% for medium and large companies (phased) under the 2026 reform.
Are small companies exempt from CIT?
Yes — small companies are exempt from CIT (and from Capital Gains Tax and the new Development Levy).
What counts as a small company?
One with annual turnover of ₦100 million or below and total fixed assets not exceeding ₦250 million.
What is the Development Levy?
A new levy on larger companies consolidating several older levies; small companies are exempt.
How do companies file CIT?
Annually on TaxProMax, using an active TIN, with accurate turnover and fixed-asset records.
What is the Company Income Tax rate in Nigeria?
Under the 2026 reform, large companies remain at 30% (with provision for a future reduction to 25% by presidential order), while qualifying small companies are exempt from CIT (effectively 0%). The rate that applies depends on your company's size classification — confirm current rates on the official NRS portal.
Are small companies exempt from Company Income Tax?
Yes — qualifying small companies are exempt from CIT (and from Capital Gains Tax and the new Development Levy). The exemption threshold was raised substantially above the old ₦25 million, with reported figures ranging around ₦50m–₦100m turnover plus a fixed-asset limit. Confirm the current definition on the official NRS portal.
What is the small-company threshold for tax exemption?
It was raised well above the old ₦25 million, but has been reported inconsistently — figures around ₦50 million to ₦100 million in annual turnover, with a fixed-asset limit also applying. Because it can be revised and sources differ, confirm the current small-company definition on the official NRS portal or with a tax adviser, and keep records as proof of eligibility.
What is the Development Levy?
A single levy (reported at around 4%) that consolidates several older earmarked levies (such as education-tax and technology/innovation levies) into one charge for larger companies. Small companies and non-resident companies are exempt. Treat the percentage as indicative and confirm the current position officially.
Does a small company pay the Development Levy?
No — qualifying small companies (and non-resident companies) are exempt from the Development Levy, just as they're exempt from CIT and Capital Gains Tax. Confirm your company qualifies under the current small-company definition on the official NRS portal.