The Nigeria Tax Act 2025 introduces a single 4% Development Levy on assessable profit, replacing the Tertiary Education Tax, NITDA, NASENI, and Police Trust Fund levies. Small and non-resident companies are exempt.
Development Levy (4% of assessable profit)
Old combined levies (4.255%): ₦2,127,500 · Difference: ₦127,500
Before the reform, companies paid several separate levies on profit — Tertiary Education Tax (3%), NITDA (1%), NASENI (0.25%), and the Police Trust Fund levy (0.005%), totalling about 4.255%. The Nigeria Tax Act 2025 folds all of these into one 4% Development Levy on assessable profit, simplifying compliance. The proceeds are shared across education, student loans, defence, IT, science/engineering, technology incubation, and cybersecurity funds.
Small companies and non-resident companies pay nothing. Pair this with the Company Income Tax calculator to see your total company tax burden.
Source: Nigeria Tax Act 2025; PwC Worldwide Tax Summaries — Nigeria, Corporate "Other taxes" (reviewed 29 May 2026); Mondaq "Implementation of the Nigeria Tax Act 2025" (13 Jan 2026). As of June 2026.
A flat 4% levy on the assessable profit of companies under the Nigeria Tax Act 2025, effective 1 January 2026. It consolidates and replaces the Tertiary Education Tax (3%), NITDA levy (1%), NASENI levy (0.25%), and Police Trust Fund levy (0.005%).
Small companies and non-resident companies are exempt. The levy also does not apply to profits computed under Hydrocarbon Tax rules.
No. An earlier version of the bill proposed a phase-down (4% then 3% then 2%), but the final Nigeria Tax Act fixes the levy at a flat 4%.
Assessable profit — profit before tax, adjusted for tax items, before the deduction of capital allowances, tax losses, and chargeable-gain considerations.
Informational only — not tax advice. A planning estimate under the Nigeria Tax Act 2025. Verify with the Nigeria Revenue Service or a qualified Nigerian tax professional. See our full disclaimer.