Key takeaways
- You are a Nigerian tax resident if you are domiciled in Nigeria, spend at least 183 days in any 12-month period (including temporary absences), serve as a Nigerian diplomat abroad, or have a permanent home, habitual abode or substantial economic or family ties in Nigeria.
- Under the reformed regime (Nigeria Tax Act 2025), personal income tax bands run from 0% on the first NGN 800,000 to 25% above NGN 50 million, in force since 1 January 2026.
- Foreigners need the right immigration status (e.g. a work permit/CERPAC through an employer); residents register for a Tax Identification Number with the relevant state or federal authority.
Last reviewed: October 2026
Nigeria overhauled its tax laws in 2025, consolidating legislation and changing personal income tax bands. This guide explains who is resident, how residents are taxed and how foreigners and diaspora Nigerians can establish or prove residence in 2026.
Nigeria tax residency – key figures (2026)
| Item | Rule |
|---|---|
| Residence tests | Domicile; 183 days in any 12 months; diplomats abroad; permanent home, habitual abode or substantial ties |
| PIT bands | 0% on first NGN 800,000; 15% next 2.2m; 18% next 9m; 21% next 13m; 23% next 25m; 25% above NGN 50m |
| Tax authority | State Internal Revenue Services (residents) / Nigeria Revenue Service (federal; formerly FIRS) |
| Tax ID | TIN (linked to NIN/BVN for individuals) |
Who is a Nigerian tax resident?
The PwC summary lists the tests: domicile, 183 days in any 12-month period (temporary absences included), Nigerian diplomatic service abroad, and a permanent home, habitual abode or substantial economic or immediate family ties in Nigeria. You are non-resident only if you meet all the non-resident conditions at once – a deliberately broad net.
Residence also determines which state taxes you: employees are generally taxed by the state where they reside.
How residents are taxed
Progressive bands apply to taxable income after reliefs:
- 0% on the first NGN 800,000;
- 15% on the next NGN 2,200,000;
- 18% on the next NGN 9,000,000;
- 21% on the next NGN 13,000,000;
- 23% on the next NGN 25,000,000;
- 25% on income above NGN 50,000,000.
Employers withhold tax monthly (PAYE); self-employed individuals file annual returns with their state.
Example: A Lagos-based product manager earning NGN 30 million a year pays 0% on the first 800,000, then 15%, 18%, 21% and 23% on the successive slices – an average rate well below the 25% top rate, before pension and other reliefs.
How to become resident (foreigners)
- Employment: an employer with an expatriate quota obtains a Subject to Regularisation (STR) visa and then a CERPAC (residence permit) for you.
- Business: register a company with the Corporate Affairs Commission and obtain business permits; foreign-owned companies typically need minimum capital.
- Register for a TIN and with your state's revenue service.
Diaspora Nigerians
Nigerians living abroad are non-resident only if they are not domiciled in Nigeria (a Nigerian domicile of origin can persist unless a new domicile is acquired abroad) and do not meet the presence and ties tests, but substantial family or economic ties in Nigeria can bring them back into residence. Keep evidence of foreign residence (residence certificate abroad).
Frequently asked questions
Who is a tax resident in Nigeria?
Anyone domiciled in Nigeria, present at least 183 days in any 12-month period, serving as a Nigerian diplomat, or with a permanent home, habitual abode or substantial economic or family ties in Nigeria.
What are the personal income tax rates in Nigeria?
0% on the first NGN 800,000, then 15%, 18%, 21% and 23% on successive bands, and 25% on income above NGN 50 million.
Do foreigners pay tax in Nigeria?
Foreign residents pay tax on their income under the same bands; non-residents are taxed on Nigerian-source income, for example work performed in Nigeria.
How do I get a tax ID in Nigeria?
Register for a Tax Identification Number with the relevant revenue authority; employees are usually registered by their employer.
Related guides
- Capital gains tax in Ghana
- Tax incentives for expats in Kenya
- How to obtain tax residency in Ivory Coast
Sources
- PwC Worldwide Tax Summaries – Nigeria: Residence
- PwC Worldwide Tax Summaries – Nigeria: Taxes on personal income
- Nigeria Tax Act 2025
This guide is general information, not personalised tax advice.
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