Withholding tax
The full matrix: what to deduct, from whom, and — the part that costs money — whether the deduction is a credit against your bill or a final tax that settles the income for good.
Every figure on this page is read from the same configuration the calculators use — none of it is typed into the page. If a number here is wrong, the calculators are wrong too, and a changelog entry will record the correction.
The matrix
Rates are keyed by what was paid, who received it, and whether they are resident. — means the combination does not arise; it is not a zero rate. F marks a deduction that is a final tax — do not credit it against your own liability. P marks passive income, where the no-TIN doubling does not apply.
| Payment | Company | Individual | ||
|---|---|---|---|---|
| Resident | Non-resident | Resident | Non-resident | |
| Investment income | ||||
| Coupon on bonds — passive incomeGovernment and corporate bond coupons attract no deduction. | 0% — final tax | 0% — final tax | 0% — final tax | 0% — final tax |
| Dividend — passive incomeFinal tax. No-TIN doubling does not apply to passive income. | 10% — final tax | 10% — final tax | 10% — final tax | 10% — final tax |
| Interest — passive incomeBank interest collected by direct debit of the bank is exempt from deduction by the payer. | 10% — final tax | 10% — final tax | 10% — final tax | 10% — final tax |
| Rent (land and buildings) — passive income | 10% — final tax | 10% — final tax | 10% — final tax | 10% — final tax |
| Hire of equipment, plant or vehicles — passive income | 10% | 10% — final tax | 10% | 10% — final tax |
| REIT / REIC distribution to real-estate investors — passive incomeExempt from deduction where the distribution is made by a REIT or REIC. | 0% — final tax | 0% — final tax | 0% — final tax | 0% — final tax |
| Royalty — passive income | 10% — final tax | 10% — final tax | 5% — final tax | 10% — final tax |
| Employment & office | ||||
| Directors' feesApplies to individuals only — a company cannot hold a directorship. | — | — | 15% | 20% — final tax |
| Other | ||||
| Winnings from lottery, gaming, reality shows | 5% — final tax | 15% — final tax | 5% — final tax | 15% — final tax |
| Services | ||||
| Commission | 5% — final tax | 10% — final tax | 5% — final tax | 10% — final tax |
| Consultancy feesTreated as a final tax for residents — do NOT credit it against a PIT or CIT liability. This is a common and expensive error. | 5% — final tax | 10% — final tax | 5% — final tax | 10% — final tax |
| Technical fees | 5% — final tax | 10% — final tax | 5% — final tax | 10% — final tax |
| Professional feesTreated as a final tax for residents — do NOT credit it against a PIT or CIT liability. | 5% — final tax | 10% — final tax | 5% — final tax | 10% — final tax |
| Management fees | 5% — final tax | 10% — final tax | 5% — final tax | 10% — final tax |
| Brokerage fees | 5% — final tax | 10% — final tax | 5% — final tax | 10% — final tax |
| Construction | ||||
| Construction of roads, bridges, buildings and power plantsThe reduced 2% rate covers the primary construction contract only. | 2% | 5% — final tax | 2% | 5% — final tax |
| All other construction-related activitiesSurvey, design, deliveries and similar ancillary activities — 5%, not the 2% construction rate. | 5% | 5% — final tax | 5% | 5% — final tax |
| Sector-specific | ||||
| Telecommunications, media, entertainment, gaming, gambling, betting and tourism | 2% | 5% — final tax | 2% | 5% — final tax |
| Transport and logisticsAirline and other passenger ticket sales are exempt from deduction. | 2% | 5% — final tax | 2% | 5% — final tax |
| Entertainers and sportspersons | 5% | 10% — final tax | 5% | 10% — final tax |
| Supply | ||||
| Supply of goods (other than by a manufacturer or producer of the goods)A manufacturer or producer supplying its OWN goods is exempt from deduction — a heavily-missed rule. | 2% | 5% — final tax | 2% | 5% — final tax |
| Supply of services (not otherwise listed) | 2% | 5% — final tax | 2% | 5% — final tax |
- —
- The combination does not arise. Not a zero rate — a company cannot hold a directorship.
- F
- Final tax. The deduction settles the tax on that income. Do not add the income to your computation and do not credit the deduction — people who do pay twice.
- P
- Passive income. The no-TIN doubling below does not apply to these.
Rates transcribed from the 2024 Regulations schedule. The final-tax treatment of resident professional and consultancy fees follows the research report and should be confirmed against the gazette and any NRS guidance before relying on it.
The matrix is the same under both regimes. What changed in 2026 is the small-company turnover cap and the penalty for failing to deduct — both below.
No TIN, and the small-company relief
| 2026 new regime | 2025 old regime | |
|---|---|---|
| No-TIN multiplierApplied where the vendor has no valid TIN. Does not apply to passive income. | 2× | 2× |
| No-TIN capThe doubled rate cannot exceed this. | 20% | 20% |
| Small-company relief — payer turnover cap | ₦50,000,000 | ₦25,000,000 |
| Small-company relief — monthly transaction threshold | ₦2,000,000 | ₦2,000,000 |
The small-company relief needs all three conditions together: the payer is a small company, the month’s transactions with that vendor total under ₦2,000,000, and the vendor has a valid TIN. Fail any one and the obligation revives.
Exemptions
- Manufacturer or producer supplying its own goods
- No deduction where the supplier manufactured or produced the goods it is supplying. Deduction applies only to intermediaries and resellers. This is the single most-missed exemption.
- Across-the-counter transactions
- Ordinary retail sales settled at the point of sale attract no deduction.
- Interest collected by a bank via direct debit
- Where the bank debits the account directly, the payer has no deduction obligation.
- REIT / REIC distributions
- Distributions by a Real Estate Investment Trust or Company to real-estate investors.
- Telephone, data and airline ticket purchases
- Airtime, data bundles and passenger air tickets are outside the deduction regime.
- Reimbursed out-of-pocket expenses
- Genuine reimbursements at cost, separately itemised on the invoice, are not subject to deduction. Only the fee element is.
- Petroleum products (PMS, AGO, LPG, CNG, kerosene)
- Supply of these fuels attracts no deduction at source.
- Income that is itself tax-exempt
- Where the underlying income is exempt from tax, no deduction arises on it.
- Small-company payer, low-value transaction, vendor has a TIN
- All three conditions must hold together: the payer is a small company, the total transaction value with that vendor in the month is under ₦2,000,000, and the vendor has a valid TIN. Fail any one and the obligation revives.
What getting it wrong costs
| 2026 new regime | 2025 old regime | |
|---|---|---|
| Failure to deductOf the amount you should have deducted, plus interest — and you still owe the deduction itself. | 40% | 40% |
| Failure to remit what you deducted | 10% | 10% |
The failure-to-deduct penalty went from 40% to 40% on 1 January 2026. If you are unsure whether to withhold, the cheaper error is to withhold and issue the credit note. Remittance dates are on the penalties page.
Tools that use these rates
- WHT rate finder & calculator — the right rate, whether to deduct, and when to remit.
- Penalty & interest estimator
- Guide: WHT — final tax or credit?
Where these rates come from
- Deduction of Tax at Source (Withholding) Regulations 2024, Schedule — verified 15 January 2026Rates transcribed from the 2024 Regulations schedule. The final-tax treatment of resident professional and consultancy fees follows the research report and should be confirmed against the gazette and any NRS guidance before relying on it.
A rate reference is not tax advice, and a rate on its own does not tell you your position. Read the disclaimer, and confirm anything load-bearing against the gazette before acting on it.