Tax Compliance

A professional breakdown of the global minimum tax debate and Nigeria's tax sovereignty, with practical compliance guidance from Prudential Consulting Limited.

Since January 2026, individuals in Nigeria have been taxed under a revised set of bands set out in the Nigeria Tax Act, 2025. The first ₦800,000 of annual income is taxed at 0%, the Consolidated Relief Allowance (CRA) no longer applies, and new deductions have taken its place. This article walks through the bands and applies them to salary examples, so you can see how the calculation works.

A clear, professional explainer on global minimum tax developments and what they mean for Nigerian companies with foreign ties, from Prudential Consulting Limited.

The difference between filing tax returns and paying tax is one of the most misunderstood areas of tax compliance in Nigeria. Many business owners assume that if no tax is owed, there is nothing to submit to the Nigeria Revenue Service (NRS). This assumption is incorrect and is one of the most common sources of avoidable penalties. Some businesses are exempted from paying tax. No business is exempted from filing tax returns. This distinction sits at the centre of Nigeria's current tax administration framework, and understanding it is essential for every company, business name, and NGO operating in the country.