Individual residents in Nigeria are taxable on their worldwide income.

In case of employment, a non resident person is liable to tax in Nigeria provided the duties are wholly or partly performed in Nigeria unless :

• the duties are performed on behalf of an employer who is in a country other than Nigeria,
• the remuneration of the employee is not borne by a fixed base of the employer in Nigeria, and
• the remuneration of the employee is liable to tax in that other country under the provisions of the avoidance of double taxation treaty (DTT) with that other country.

Personal income tax rates

The table below shows a summary of the taxable income tax bands and applicable rates of tax on an annual basis.

* Nigerian naira

Minimum income tax

Where a taxpayer has no taxable income because of personal reliefs and allowances or total income produces a tax lower than the minimum tax, a minimum tax rate of 1% of the total income is payable.

source: Pwc Nigeria

Nigeria has a both beneficial and detrimental taxation system where the rich can not escape Tax but the poor drown in it. This though is a good way to extract funds as a funds as a country but also harmful to the poor, who are meant to be excluded in tax payments.