DoubleTaxationTaxes on salary: Nigeria preliminary data
How much income tax and social contributions are paid on a salary in Nigeria, what a sole proprietor and a company pay, and which special regimes exist. Preliminary data.
Preliminary data: headline rates from official sources and bulletins of international organisations, without reliefs or special rules; being refined.
Calculation for a gross salary of €60,000 per year
| Gross salary | NGN 100,590,646 ≈ €60,000 |
|---|---|
| Income tax | NGN 21,065,849 ≈ €12,565 |
| Employee contributions | NGN 8,047,252 ≈ €4,800 |
| Take-home pay | NGN 71,477,546 ≈ €42,635 |
| Employer contributions and payroll taxes | NGN 11,064,971 ≈ €6,600 |
| Employer's labour cost | NGN 111,655,618 ≈ €66,600 |
Only some of the country's direct taxes and levies are counted: income tax on wages and compulsory contributions. Not counted: property and real-estate taxes; taxes on dividends, interest and other investment income; inheritance and gift taxes; indirect taxes such as VAT, excise and customs duties.
Taxes for sole proprietors and companies
Tax and contributions on the profit for a year; expenses are 10% of revenue, the company pays its profit out to the owner. Reliefs and local taxes are not included.
| Annual revenue | €30,000 NGN 50,295,323 | €60,000 NGN 100,590,646 | €120,000 NGN 201,181,293 |
|---|---|---|---|
| Sole proprietor | NGN 9,341,132 20.6 % | NGN 20,562,895 22.7 % | NGN 43,195,791 23.9 % |
| Company | NGN 0 0.0 % | NGN 27,159,475 30.0 % | NGN 54,318,949 30.0 % |
Special tax regimes
There are no special regimes for individuals.
Tax residence
The tax residence check does not cover Nigeria yet.
Assumptions
- Calculated with the OECD Taxing Wages methodology: income tax including local taxes plus employee social security; single person without children, tax year 2026, ECB rate of 2 January 2026.
- Exchange rate: 1 EUR = 1676.510774 NGN (Central Bank of Nigeria — Exchange Rates by Currency (US DOLLAR, central rate), 02/01/2026) ↗
Sources
- National Assembly of Nigeria — Nigeria Tax Act, 2025 (No. 7): s.30, s.56, s.58, s.59, Fourth Schedule, definition of small company
- US SSA — Social Security Programs Throughout the World: Africa, 2019 — Nigeria
Data checked: 08/11/2026. An indicative calculation for a typical case. Not tax advice.