Corporate tax compliance in Nigeria is an essential requirement for any company operating within the country—whether local or foreign. For businesses involved in import and export, wholesale distribution, logistics, or large-scale sourcing, understanding Nigeria’s tax environment is not only mandatory but also critical for financial stability and long-term growth.

Nigeria’s tax framework, overseen by the Federal Inland Revenue Service (FIRS), continues to evolve, especially as the government pushes for greater transparency and efficiency. For companies trading across Africa, staying compliant prevents penalties, avoids operational delays, and ensures uninterrupted business activities.

Wigmore Trading supports companies entering or expanding within the Nigerian market, helping them maintain seamless operations by providing sourcing, distribution, and trade-related compliance assistance.

Understanding the Corporate Tax Landscape in Nigeria

Corporate tax in Nigeria is governed by the Companies Income Tax Act (CITA). This act outlines how companies are taxed, what revenue is taxable, and the obligations businesses must meet each year.

Within this structure, companies must be aware of several key tax components:

• Companies Income Tax (CIT) – charged at rates between 20%–30%, depending on company size.

• Value Added Tax (VAT) – currently 7.5%, applicable to most goods and services.

• Tertiary Education Tax (TET) – 3% of assessable profits.

• Withholding Tax (WHT) – applicable to specific transactions such as contracts, consultancy, and rent.

• Customs duties – relevant for businesses engaged in import and export.

For international firms and regional distributors, managing all these tax obligations can feel overwhelming. That’s where an experienced partner such as Wigmore Trading can help, offering guidance on cross-border trade compliance that aligns with Nigerian regulations.

Why Corporate Tax Compliance Matters

Non-compliance isn’t simply a legal issue. It can disrupt business operations in several ways:

• Financial penalties and interest on unpaid taxes

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• Audit risks that can lead to additional tax liabilities

• Suspension of import and export licences

• Loss of investor confidence and restrictions with banking partners

• Delays at ports or with customs clearance

For companies that rely on fast supply chains—such as FMCG wholesalers or logistics providers—these delays can have costly consequences. Maintaining accurate compliance ensures your goods move freely and your business remains trusted by partners across the supply network.

Core Corporate Tax Compliance Requirements in Nigeria

1. Registering With the FIRS

Every incorporated business must register for a Tax Identification Number (TIN). Without this, a company cannot file tax returns or operate fully within the formal economy.

2. Filing Annual Corporate Income Tax Returns

CIT returns must be filed within six months of the end of a financial year. These returns include audited financial statements, capital allowance claims, and tax computations.

3. Monthly VAT Filing and Remittance

Companies must file VAT returns on or before the 21st of every month, even if no transaction occurred. Missing deadlines results in penalties.

4. Withholding Tax Deductions and Filing

Businesses must deduct WHT from eligible transactions and remit it to the FIRS within 21 days.

5. Maintaining Proper Accounting Records

Good bookkeeping supports accurate tax calculations. It also helps businesses defend themselves during audits or tax reviews.

Wigmore Trading often supports international clients by providing local guidance on invoicing, import documentation, and transaction transparency—key elements that help maintain full tax compliance.

Common Challenges Businesses Face

Despite its importance, corporate tax compliance in Nigeria presents several challenges:

• Frequent regulatory updates, requiring constant monitoring

• Complex documentation for companies trading across borders

• Inaccurate bookkeeping, especially within companies new to Nigeria

• Multiple tax touchpoints, including FIRS, Customs, and state authorities

For companies without local expertise, these issues can result in avoidable penalties. Working with an experienced service provider ensures compliance processes run smoothly.

How Wigmore Trading Supports Your Corporate Tax Compliance Efforts

While Wigmore Trading is not a tax consultancy, our long-standing experience in Nigeria’s business environment allows us to assist companies in staying organised, compliant, and trade-ready.

We help businesses by:

• Providing accurate import and export documentation needed for tax and customs compliance.

• Ensuring transparency in the sourcing and supply chain, preventing discrepancies that attract tax penalties.

• Offering local market guidance for foreign investors and distributors entering Nigeria.

• Supporting companies in maintaining clear records across supply activities.

When your operations are structured correctly, staying compliant with Nigerian tax rules becomes significantly easier. Contact Wigmore Trading today to streamline your sourcing and stay fully compliant.

Conclusion

Corporate tax compliance in Nigeria is vital for any company operating within the country’s dynamic trade environment. With accurate documentation, timely filings, and expert support, businesses can avoid penalties and maintain smooth operations. Wigmore Trading stands ready to support your sourcing, logistics, and distribution activities so you can operate confidently and efficiently.