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Withholding Tax (WHT) in Nigeria

What WHT is, how deduction at source works, and why quoting a valid TIN protects you.

By Belmadeng Editorial · Updated 22 Sept 2026

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.

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What WHT is

Withholding Tax (WHT) is an advance payment of tax deducted at source on certain payments — for example on some contract, service, rent, dividend, interest and royalty payments. The payer withholds a percentage and remits it to the tax authority.

How it works

When a qualifying payment is made, the payer deducts WHT at the applicable rate (which varies by transaction type and whether the recipient is a company or individual) and pays the net amount to the recipient, remitting the WHT to the NRS (or State IRS, as applicable).

Why your TIN matters

Under the new rules, if a business fails to quote a valid TIN on invoices/contracts, the payer must deduct WHT at the full statutory rate and any reduced-rate relief is forfeited. Always quote (and verify) a valid TIN.

It’s a credit, not extra tax

WHT generally isn’t an additional tax — it’s an advance you can usually credit against your final tax (CIT or personal income tax) when you file, provided you have the WHT credit notes.

Deduct & remit

If you’re the payer, deduct correctly and remit on time via TaxProMax; keep WHT credit notes for recipients.

Tips

  • Quote a valid TIN to keep reduced rates.
  • Keep WHT credit notes to offset final tax.
  • Confirm the current rate for each transaction type.

Frequently asked questions

What is Withholding Tax (WHT)?
An advance payment of tax deducted at source on certain payments (e.g. some contracts, services, rent, dividends), remitted by the payer to the tax authority.
How does WHT work?
The payer deducts WHT at the applicable rate, pays the net to the recipient, and remits the WHT to the NRS or State IRS; the recipient gets a credit note.
Why does my TIN matter for WHT?
If you don’t quote a valid TIN, WHT is deducted at the full statutory rate and reduced-rate relief is forfeited.
Is WHT an extra tax?
Generally no — it’s an advance you can usually credit against your final CIT or personal income tax when you file, with the credit notes.
Where do I remit WHT?
Via TaxProMax for federal WHT (or the State IRS where applicable), on time, keeping credit notes for recipients.

Related tax guides

Get a TIN · Verify a TIN · Filing · All tax guides

Reviewed: 22 Sept 2026 · Author: Belmadeng Editorial. Independent guide, not affiliated with the FIRS/NRS, and not tax advice. Tax rates, thresholds and rules change — always confirm on the official NRS channels or with a tax professional.